FROM: U.S. JUSTICE DEPARTMENT
Settlement with the FTC and Florida Attorney General Stops Operations that Used Robocalls to Fraudulently Pitch Medical Alert Devices to Seniors
A settlement obtained by the Federal Trade Commission and the Office of the Florida Attorney General permanently shuts down an Orlando-based operation that bilked seniors by using pre-recorded robocalls to sell them supposedly free medical alert systems.
The settlement order bans the defendants from making robocalls, prohibits other telemarketing activities, and bars them from making misrepresentations related to the sale of any product or service. The order includes a judgment of nearly $23 million, most of which will be suspended after the defendants surrender assets including cash, cars, and a boat.
”This case is a great example of how federal and state law enforcement can work together to stop fraudulent telemarketing targeting older consumers,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “The FTC will continue to work with its state partners to protect senior citizens from pernicious schemes like this one.”
“We must do everything within our power to protect Florida’s consumers. The scheme we have stopped allegedly targeted Florida’s senior citizens, and we, along with our Federal Trade Commission partners, have held these individuals accountable,” said Attorney General Pam Bondi.
According to the joint agency complaint, announced in January, the defendants violated the FTC Act, the Commission’s Telemarketing Sales Rule (TSR), and Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) by blasting robocalls to senior citizens falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. Many of the consumers who received the defendants’ calls were elderly, live alone, and have limited or fixed incomes.
Consumers who pressed one (1) on their phones for more information were transferred to a live representative who continued the deception by falsely saying that their medical alert systems are recommended by the American Heart Association, the American Diabetes Association, and the National Institute on Aging. In addition, the telemarketers falsely said that the $34.95 monthly monitoring fee would be charged only after the system has been installed and activated. In reality, consumers were charged immediately, regardless of whether the system was activated or not.
The court order settling the agencies’ charges also imposes a judgment of $22,989,609, the total amount consumers paid for monthly monitoring services for their medical alert devices. The judgment will be suspended as to all of the settling defendants once the individual defendants turn over cash and other assets valued at about $79,000, including $24,000 that was transferred in violation of a court-ordered asset freeze.
Assets that will be sold include a 2008 BMW, a 1984 Hans Christian sailboat, a 2004 Mercedes, and a 2008 Lincoln Navigator. In addition, defendant Joseph Settecase is subject to a second judgment of $39,300, which will not be suspended. This judgment reflects the funds that Settecase retained after selling his Ferrari in violation of the asset freeze and transferring a portion of the proceeds to another defendant.
The defendants subject to the settlement include: 1) Worldwide Info Services, Inc., also doing business as (d/b/a) The Credit Voice; 2) Elite Information Solutions Inc., also d/b/a The Credit Voice; 3) Absolute Solutions Group Inc., also d/b/a The Credit Voice; 4) Global Interactive Technologies, Inc., also d/b/a The Credit Voice Inc.; 5) Global Service Providers, Inc.; 6) Arcagen, Inc., also d/b/a ARI; 7) American Innovative Concepts, Inc.; 8) Unique Information Services Inc.; 9) National Life Network, Inc., and their principals 10) Michael Hilgar; 11) Gary Martin; 12) Joseph Settecase; and 13) Yuluisa Nieves.
One defendant, Live Agent Response 1 LLC, also d/b/a LAR, has not settled, and the FTC and Florida AG are seeking a default judgment against it. In May, the parties stipulated to the dismissal of The Credit Voice, Inc. as a defendant.
The FTC and Florida Attorney General’s Office appreciate the assistance of the following agencies, offices, and organizations in helping to investigate and bring this case: 1) the Indiana Office of the Attorney General; 2) the Minnesota Office of the Attorney General; 3) the Florida Department of Agriculture and Consumer Services; 4) the Better Business Bureau Serving Eastern Missouri and Southern Illinois; 5) the American Heart Association; 6) the American Diabetes Association; 7) the National Institute on Aging; 8) the United States Postal Inspection Service, including its Atlanta, Boston, and Houston divisions; and 9) the Seminole County Sheriff’s Office, Financial Crimes Task Force.
Monday, November 17, 2014
FORMER SWISS BANKER CHARGED FOR ROLE IN CASE INVOLVING THE HIDING OF HUNDREDS OF MILLION OF DOLLARS FROM IRS
FROM: U.S. JUSTICE DEPARTMENT
Thursday, November 13, 2014
Former Swiss Banker Charged in Manhattan Federal Court for Conspiring with U.S. Taxpayers to Hide Hundreds of Millions of Dollars in Swiss Bank Accounts
U.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the New York Field Office of the Internal Revenue Service- Criminal Investigation (IRS-CI) announced today the indictment of Martin Dunki, a former client advisor and Senior Vice President at a Swiss bank headquartered in Zurich, Switzerland (Swiss Bank No. 1), for conspiring with U.S. taxpayer-clients and others to hide hundreds of millions of dollars in offshore accounts from the IRS, and to evade U.S. taxes on the income earned in those accounts.
“As alleged, Martin Dunki went to great lengths to help his U.S. taxpayer clients secret away millions of dollars in Swiss bank accounts,” said U.S. Attorney Bharara. “With today’s Indictment, Dunki joins the ranks of many other individuals this Office has charged in connection with hiding money in offshore bank accounts from the Internal Revenue Service.”
“The vigorous pursuit of unreported income in hidden offshore accounts is a top priority for the Internal Revenue Service,” said Acting IRS-CI Special Agent in Charge Shantelle P. Kitchen. “As part of our strategy, we will continue to identify and investigate banking and finance professionals who advise U.S. clients about ways to conceal their assets from the U.S. Government.”
According to the allegations contained in the indictment, which was unsealed today in Manhattan federal court, and other publicly available information:
Between 1995 and 2012, Dunki helped U.S. taxpayers evade taxes and hide hundreds of millions of dollars in undeclared accounts at Swiss Bank No. 1. Dunki provided this advice and assistance to U.S. taxpayers in his capacity as a client advisor at Swiss Bank No. 1, where he was employed until early 2012.
One of Dunki’s co-conspirators was Edgar Paltzer, an attorney based in Zurich, Switzerland, who previously pleaded guilty in the Southern District of New York for his role in assisting U.S. taxpayers and others to evade taxes. In 1999, Dunki, Paltzer and an attorney from Santa Barbara, California (Attorney 1), began working together in the management of undeclared accounts at Swiss Bank No. 1 for a number of U.S. taxpayers (collectively, the Dunki/Attorney 1 Clients). The undeclared assets of the Dunki/Attorney 1 Clients were maintained in accounts held in the names of sham foreign foundations, rather than in the names of the clients individually, to help the clients conceal their ownership of these undeclared accounts from the IRS. Initially, the sham foundations that held the accounts were organized under the laws of Liechtenstein. In December 2008, however, Liechtenstein and the United States signed a Tax Information Exchange Treaty (TIEA), under which Liechtenstein agreed to provide the United States with access to certain bank and other information needed to enforce U.S. tax laws. As a result of the TIEA between Liechtenstein and the United States, and to prevent disclosure to the IRS of the undeclared accounts maintained by the Dunki/Attorney 1 Clients, Dunki and others transferred the undeclared assets of the Dunki/Attorney 1 Clients to new accounts at Swiss Bank No. 1, held by new sham foundations organized under the laws of Panama. Moreover, beginning in August 2009, in response to the investigation of another Swiss bank, UBS AG, for helping U.S. taxpayers maintain undeclared accounts in Switzerland, Dunki and others helped to further conceal the undeclared accounts of the Dunki/Attorney 1 Clients by using assets in those accounts to purchase gold and other precious metals. The gold and precious metals, which amounted to tens of millions of dollars, were then transferred to escrow accounts opened at Swiss Bank No. 1 and hidden, along with substantial sums of cash, in a vault in Switzerland for the benefit of the Dunki/Attorney 1 Clients.
In addition to opening, maintaining, and managing undeclared accounts at Swiss Bank No. 1 for the Dunki/Attorney 1 Clients, Dunki opened, maintained and managed undeclared accounts at Swiss Bank No. 1 for other U.S. taxpayers. For instance, between 2000 and 2012, Dunki helped one U.S. taxpayer hide nearly $300 million in assets at Swiss Bank No. 1, in undeclared accounts held in the names of sham Liberian corporations. Further, between 1995 and 2008, Dunki helped another U.S. taxpayer maintain approximately $70 million in an undeclared account at Swiss Bank No. 1. When Dunki met with this taxpayer in the United States, the account statements that Dunki brought with him were deliberately cut off at the top, to omit the account number and the name of Swiss Bank No. 1, because – as Dunki himself acknowledged to the taxpayer – Dunki had to be careful not to leave a trace when going through U.S. customs.
Dunki also helped U.S. taxpayers bring funds back to the United States in ways designed to ensure that U.S. authorities would not discover the existence of the taxpayers’ undeclared accounts at Swiss Bank No. 1. For example, on at least one occasion, Dunki met a U.S. taxpayer in the United States and provided the taxpayer with an envelope containing approximately $10,000 in cash, which represented a cash withdrawal from the taxpayer’s undeclared account at Swiss Bank No. 1. On other occasions, Dunki helped send money from a U.S. taxpayer’s undeclared account at Swiss Bank No. 1 to another account in Geneva, Switzerland, and, from there, to a diamond dealer in Manhattan. Once the money was received by the diamond dealer, the U.S. taxpayer would pick it up and give the diamond dealer a fraction of the money as a commission.
Dunki, 66, a Swiss citizen, resides in Switzerland and has not been arrested. Dunki is charged with one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Tax Division for their significant assistance in the investigation.
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Thursday, November 13, 2014
Former Swiss Banker Charged in Manhattan Federal Court for Conspiring with U.S. Taxpayers to Hide Hundreds of Millions of Dollars in Swiss Bank Accounts
U.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the New York Field Office of the Internal Revenue Service- Criminal Investigation (IRS-CI) announced today the indictment of Martin Dunki, a former client advisor and Senior Vice President at a Swiss bank headquartered in Zurich, Switzerland (Swiss Bank No. 1), for conspiring with U.S. taxpayer-clients and others to hide hundreds of millions of dollars in offshore accounts from the IRS, and to evade U.S. taxes on the income earned in those accounts.
“As alleged, Martin Dunki went to great lengths to help his U.S. taxpayer clients secret away millions of dollars in Swiss bank accounts,” said U.S. Attorney Bharara. “With today’s Indictment, Dunki joins the ranks of many other individuals this Office has charged in connection with hiding money in offshore bank accounts from the Internal Revenue Service.”
“The vigorous pursuit of unreported income in hidden offshore accounts is a top priority for the Internal Revenue Service,” said Acting IRS-CI Special Agent in Charge Shantelle P. Kitchen. “As part of our strategy, we will continue to identify and investigate banking and finance professionals who advise U.S. clients about ways to conceal their assets from the U.S. Government.”
According to the allegations contained in the indictment, which was unsealed today in Manhattan federal court, and other publicly available information:
Between 1995 and 2012, Dunki helped U.S. taxpayers evade taxes and hide hundreds of millions of dollars in undeclared accounts at Swiss Bank No. 1. Dunki provided this advice and assistance to U.S. taxpayers in his capacity as a client advisor at Swiss Bank No. 1, where he was employed until early 2012.
One of Dunki’s co-conspirators was Edgar Paltzer, an attorney based in Zurich, Switzerland, who previously pleaded guilty in the Southern District of New York for his role in assisting U.S. taxpayers and others to evade taxes. In 1999, Dunki, Paltzer and an attorney from Santa Barbara, California (Attorney 1), began working together in the management of undeclared accounts at Swiss Bank No. 1 for a number of U.S. taxpayers (collectively, the Dunki/Attorney 1 Clients). The undeclared assets of the Dunki/Attorney 1 Clients were maintained in accounts held in the names of sham foreign foundations, rather than in the names of the clients individually, to help the clients conceal their ownership of these undeclared accounts from the IRS. Initially, the sham foundations that held the accounts were organized under the laws of Liechtenstein. In December 2008, however, Liechtenstein and the United States signed a Tax Information Exchange Treaty (TIEA), under which Liechtenstein agreed to provide the United States with access to certain bank and other information needed to enforce U.S. tax laws. As a result of the TIEA between Liechtenstein and the United States, and to prevent disclosure to the IRS of the undeclared accounts maintained by the Dunki/Attorney 1 Clients, Dunki and others transferred the undeclared assets of the Dunki/Attorney 1 Clients to new accounts at Swiss Bank No. 1, held by new sham foundations organized under the laws of Panama. Moreover, beginning in August 2009, in response to the investigation of another Swiss bank, UBS AG, for helping U.S. taxpayers maintain undeclared accounts in Switzerland, Dunki and others helped to further conceal the undeclared accounts of the Dunki/Attorney 1 Clients by using assets in those accounts to purchase gold and other precious metals. The gold and precious metals, which amounted to tens of millions of dollars, were then transferred to escrow accounts opened at Swiss Bank No. 1 and hidden, along with substantial sums of cash, in a vault in Switzerland for the benefit of the Dunki/Attorney 1 Clients.
In addition to opening, maintaining, and managing undeclared accounts at Swiss Bank No. 1 for the Dunki/Attorney 1 Clients, Dunki opened, maintained and managed undeclared accounts at Swiss Bank No. 1 for other U.S. taxpayers. For instance, between 2000 and 2012, Dunki helped one U.S. taxpayer hide nearly $300 million in assets at Swiss Bank No. 1, in undeclared accounts held in the names of sham Liberian corporations. Further, between 1995 and 2008, Dunki helped another U.S. taxpayer maintain approximately $70 million in an undeclared account at Swiss Bank No. 1. When Dunki met with this taxpayer in the United States, the account statements that Dunki brought with him were deliberately cut off at the top, to omit the account number and the name of Swiss Bank No. 1, because – as Dunki himself acknowledged to the taxpayer – Dunki had to be careful not to leave a trace when going through U.S. customs.
Dunki also helped U.S. taxpayers bring funds back to the United States in ways designed to ensure that U.S. authorities would not discover the existence of the taxpayers’ undeclared accounts at Swiss Bank No. 1. For example, on at least one occasion, Dunki met a U.S. taxpayer in the United States and provided the taxpayer with an envelope containing approximately $10,000 in cash, which represented a cash withdrawal from the taxpayer’s undeclared account at Swiss Bank No. 1. On other occasions, Dunki helped send money from a U.S. taxpayer’s undeclared account at Swiss Bank No. 1 to another account in Geneva, Switzerland, and, from there, to a diamond dealer in Manhattan. Once the money was received by the diamond dealer, the U.S. taxpayer would pick it up and give the diamond dealer a fraction of the money as a commission.
Dunki, 66, a Swiss citizen, resides in Switzerland and has not been arrested. Dunki is charged with one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Tax Division for their significant assistance in the investigation.
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
A.G. HOLDER'S REMARKS AFTER MEETING WITH EU OFFICIALS REGARDING FOREIGN TERRORIST FIGHTERS AND COOPERATION
FROM: U.S. JUSTICE DEPARTMENT
Remarks by Attorney General Holder at the Media Availability Following Meeting with European Union Officials About Foreign Terrorist Fighters and Other Areas of Mutual Concern
Washington, DCUnited States ~ Thursday, November 13, 2014
Thank you all for being here. It has been a pleasure to welcome so many of my colleagues and counterparts to Washington, D.C., for this week’s important ministerial meeting.
Over the past two days, we have discussed the considerable work that’s currently enabling the U.S. and the EU to coordinate on common threats – in addition to the steps that we can, and must, take together in the days ahead.
In the last year alone, our nations have taken tough, coordinated action against cyber criminals, online child pornographers, and transnational organized crime. We had the privilege of hearing today from some of our lead prosecutors on the Game Over Zeus cyber investigation and the action against Tor dark markets, including the second edition of the Silk Road website, that have taken place over the past few days. Both, of course, involved U.S. authorities and multiple EU member states.
And we also have heard how we have worked together against traditional organized crime groups, including ’Ndranghta – where our coordinated work with Italy led to 25 arrests in New York and Calabria earlier this year.
Importantly, we also discussed a number of steps that the U.S. – and the EU and its member states – can take together to address the issue of foreign terrorist fighters, including through information sharing, investigations and prosecutions, and countering violent extremism.
One important area, we agreed, was developing the capabilities of our partner governments to deal with foreign terrorist fighters.
The Department of Justice is part of a U.S. Government-wide effort in this regard.
I can announce today that, with the support of the State Department’s Bureau of Counterterrorism, the Department of Justice has detailed federal prosecutors and senior law enforcement advisors to reside in key regions – including the Balkans, the Middle East and North Africa – to work with countries seeking to increase their capacity to investigate and prosecute foreign terrorist fighters.
The Department of Justice has advisors residing in four Balkans countries. And we will soon be placing a regional counterterrorism advisor in the area.
Justice Department prosecutors have also been placed in ten countries in the Middle East and North Africa. These personnel will provide critical assistance to our allies in order to help prosecute those who return from the Syrian region bent on committing acts of terrorism.
Our counterterrorism prosecutors here in the U.S. also travel to other countries to collaborate with their counterparts.
And we have assigned a U.S. prosecutor as the Interim Director of the International Institute for Justice and the Rule of Law, or IIJ – located in Malta – which provides a forum to discuss the Foreign Terrorist Fighter problem and work with international partners to arrive at solutions.
The Justice Department provides vital expertise and support to the IIJ, in partnership with the State Department’s Bureau of Counterterrorism, and in collaboration with the UN Counter-Terrorism Committee Executive Directorate.
Finally, we are working with other partners, including the UN Office on Drugs and Crime, to help build the capacity of partners world-wide to engage in mutual legal assistance on cases involving terrorism and transnational crime.
Our goal in all these efforts is to build the capacity to fight Foreign Terrorist Fighters within the rule of law – so we can stop the flow of fighters into conflict regions, stem the tide of violence, and aggressively combat violent extremism.
As our discussions have shown, in all of these areas, we can succeed only as partners. And I am happy to have partners such as these on both sides of the Atlantic.
I appreciate this chance to join so many invaluable colleagues and counterparts here in Washington, as we keep advancing these critical discussions – and building on the great work that’s underway. And I look forward to all that our nations must – and surely will – achieve together in the months and years ahead.
Thank you.
Remarks by Attorney General Holder at the Media Availability Following Meeting with European Union Officials About Foreign Terrorist Fighters and Other Areas of Mutual Concern
Washington, DCUnited States ~ Thursday, November 13, 2014
Thank you all for being here. It has been a pleasure to welcome so many of my colleagues and counterparts to Washington, D.C., for this week’s important ministerial meeting.
Over the past two days, we have discussed the considerable work that’s currently enabling the U.S. and the EU to coordinate on common threats – in addition to the steps that we can, and must, take together in the days ahead.
In the last year alone, our nations have taken tough, coordinated action against cyber criminals, online child pornographers, and transnational organized crime. We had the privilege of hearing today from some of our lead prosecutors on the Game Over Zeus cyber investigation and the action against Tor dark markets, including the second edition of the Silk Road website, that have taken place over the past few days. Both, of course, involved U.S. authorities and multiple EU member states.
And we also have heard how we have worked together against traditional organized crime groups, including ’Ndranghta – where our coordinated work with Italy led to 25 arrests in New York and Calabria earlier this year.
Importantly, we also discussed a number of steps that the U.S. – and the EU and its member states – can take together to address the issue of foreign terrorist fighters, including through information sharing, investigations and prosecutions, and countering violent extremism.
One important area, we agreed, was developing the capabilities of our partner governments to deal with foreign terrorist fighters.
The Department of Justice is part of a U.S. Government-wide effort in this regard.
I can announce today that, with the support of the State Department’s Bureau of Counterterrorism, the Department of Justice has detailed federal prosecutors and senior law enforcement advisors to reside in key regions – including the Balkans, the Middle East and North Africa – to work with countries seeking to increase their capacity to investigate and prosecute foreign terrorist fighters.
The Department of Justice has advisors residing in four Balkans countries. And we will soon be placing a regional counterterrorism advisor in the area.
Justice Department prosecutors have also been placed in ten countries in the Middle East and North Africa. These personnel will provide critical assistance to our allies in order to help prosecute those who return from the Syrian region bent on committing acts of terrorism.
Our counterterrorism prosecutors here in the U.S. also travel to other countries to collaborate with their counterparts.
And we have assigned a U.S. prosecutor as the Interim Director of the International Institute for Justice and the Rule of Law, or IIJ – located in Malta – which provides a forum to discuss the Foreign Terrorist Fighter problem and work with international partners to arrive at solutions.
The Justice Department provides vital expertise and support to the IIJ, in partnership with the State Department’s Bureau of Counterterrorism, and in collaboration with the UN Counter-Terrorism Committee Executive Directorate.
Finally, we are working with other partners, including the UN Office on Drugs and Crime, to help build the capacity of partners world-wide to engage in mutual legal assistance on cases involving terrorism and transnational crime.
Our goal in all these efforts is to build the capacity to fight Foreign Terrorist Fighters within the rule of law – so we can stop the flow of fighters into conflict regions, stem the tide of violence, and aggressively combat violent extremism.
As our discussions have shown, in all of these areas, we can succeed only as partners. And I am happy to have partners such as these on both sides of the Atlantic.
I appreciate this chance to join so many invaluable colleagues and counterparts here in Washington, as we keep advancing these critical discussions – and building on the great work that’s underway. And I look forward to all that our nations must – and surely will – achieve together in the months and years ahead.
Thank you.
THE RELATIONSHIP OF THE "MICROBIOME" AND INFECTIOUS DISEASE OUTBREAKS
FROM: THE NATIONAL SCIENCE FOUNDATION
"Microbiome" of Sierra Nevada yellow-legged frogs shifts during infectious disease outbreaks
Interaction between microbiome and infectious pathogens may drive disease
The adult human body is made up of some 37 trillion cells. But microbes, mainly bacteria, outnumber our body's cells by a ratio of 10-to-1.
Scientists now recognize that this huge community of benign microbes--called the microbiome--affects the health, development and evolution of all multicellular organisms, including humans.
Studies show that interactions between such microbiomes and pathogens, or disease-causing microorganisms, can have profound effects on infectious diseases.
In results of a new study, scientists from the University of California, Santa Barbara (UCSB) demonstrate that a fungal pathogen of amphibians does just that. The findings appear this week in the journal Proceedings of the National Academy of Sciences.
Infectious pathogens may disrupt the microbiome
Experiments with model organisms such as mice have shown that infectious pathogens can disrupt the microbiome, but the extent to which this process shapes disease outbreaks is largely unknown.
The work, conducted by scientists Cherie Briggs and Andrea Jani of UCSB, addresses a gap in disease ecology and microbiome research.
"This study shows the importance of knowing how the many benign microbes living on and in our bodies interact with those that cause disease," says Sam Scheiner, National Science Foundation program director for the joint NSF-NIH-USDA Ecology and Evolution of Infectious Disease Program, which funded the research.
"The results are important for developing responses to a disease that's causing amphibians to go extinct worldwide," says Scheiner, "and have implications for future studies of human health."
Jani and Briggs found that the fungus Batrachochytrium dendrobatidis (Bd) drives changes in the frogs' skin microbiomes during disease outbreaks in four populations of the Sierra Nevada yellow-legged frog (Rana sierrae).
Chytridiomycosis, an infectious disease of amphibian skin caused by the Bd pathogen, is a leading cause of amphibian losses worldwide.
"Since amphibian skin is the organ infected by Bd, there has been a lot of interest in how anti-fungal properties of some skin bacteria may protect the frogs," says Briggs.
"We focused on the flip side of this interaction: how infection with Bd can disrupt the skin microbial community."
Next-generation DNA sequencing documents changes
"We used next-generation DNA sequencing to document shifts in skin bacteria communities of the frogs during Bd outbreaks," Jani says.
"We paired field surveys with laboratory infection experiments, demonstrating a causal relationship in which Bd altered the frog's microbiome."
The researchers found that the severity of infection with Bd is strongly correlated with the composition of bacteria communities on the frogs' skin.
"It was surprising that across the different frog populations, there was a striking consistency in the correlation with Bd," says Jani.
One of the populations crashed due to Bd infection, but the other three populations tolerated Bd infections.
"There are different disease dynamics going on," says Jani, "yet there's a similar relationship between the microbiome and Bd."
Answers still elusive
The researchers were unable to conclusively determine whether the Bd-induced disturbance of the frog skin microbiome contributed to the disease symptoms.
The pathogens may interact with the microbiome directly or by manipulating the frogs' immune systems.
It's possible, the biologists say, that the pathogens directly compete with certain bacteria for space or resources or release compounds that affect some bacteria species.
Or the pathogens may control frog immune responses to favor their own growth and disrupt the normal microbiome.
The researchers say that promise exists for probiotic treatments as a way of fighting the decline of frogs due to Bd, but they're careful to qualify the statement.
There is a lot they still don't understand about the environmental effects of such treatments or the interactions between the frogs' microbiomes and the Bd pathogen.
-- Cheryl Dybas, NSF
-- Julie Cohen, UCSB (
Related Programs
Ecology of infectious disease
Sunday, November 16, 2014
PRESIDENT OBAMA'S STATEMENT ON DEATH OF ABDUL-RAHMAN KASSIG AT THE HANDS OF ISIL
FROM: THE WHITE HOUSE
November 16, 2014
Statement by the President on the Death of Abdul-Rahman Kassig
Today we offer our prayers and condolences to the parents and family of Abdul-Rahman Kassig, also known to us as Peter. We cannot begin to imagine their anguish at this painful time.
Abdul-Rahman was taken from us in an act of pure evil by a terrorist group that the world rightly associates with inhumanity. Like Jim Foley and Steven Sotloff before him, his life and deeds stand in stark contrast to everything that ISIL represents. While ISIL revels in the slaughter of innocents, including Muslims, and is bent only on sowing death and destruction, Abdul-Rahman was a humanitarian who worked to save the lives of Syrians injured and dispossessed by the Syrian conflict. While ISIL exploits the tragedy in Syria to advance their own selfish aims, Abdul-Rahman was so moved by the anguish and suffering of Syrian civilians that he traveled to Lebanon to work in a hospital treating refugees. Later, he established an aid group, SERA, to provide assistance to Syrian refugees and displaced persons in Lebanon and Syria. These were the selfless acts of an individual who cared deeply about the plight of the Syrian people.
ISIL's actions represent no faith, least of all the Muslim faith which Abdul-Rahman adopted as his own. Today we grieve together, yet we also recall that the indomitable spirit of goodness and perseverance that burned so brightly in Abdul-Rahman Kassig, and which binds humanity together, ultimately is the light that will prevail over the darkness of ISIL.
November 16, 2014
Statement by the President on the Death of Abdul-Rahman Kassig
Today we offer our prayers and condolences to the parents and family of Abdul-Rahman Kassig, also known to us as Peter. We cannot begin to imagine their anguish at this painful time.
Abdul-Rahman was taken from us in an act of pure evil by a terrorist group that the world rightly associates with inhumanity. Like Jim Foley and Steven Sotloff before him, his life and deeds stand in stark contrast to everything that ISIL represents. While ISIL revels in the slaughter of innocents, including Muslims, and is bent only on sowing death and destruction, Abdul-Rahman was a humanitarian who worked to save the lives of Syrians injured and dispossessed by the Syrian conflict. While ISIL exploits the tragedy in Syria to advance their own selfish aims, Abdul-Rahman was so moved by the anguish and suffering of Syrian civilians that he traveled to Lebanon to work in a hospital treating refugees. Later, he established an aid group, SERA, to provide assistance to Syrian refugees and displaced persons in Lebanon and Syria. These were the selfless acts of an individual who cared deeply about the plight of the Syrian people.
ISIL's actions represent no faith, least of all the Muslim faith which Abdul-Rahman adopted as his own. Today we grieve together, yet we also recall that the indomitable spirit of goodness and perseverance that burned so brightly in Abdul-Rahman Kassig, and which binds humanity together, ultimately is the light that will prevail over the darkness of ISIL.
U.S.-CANADIAN OFFICIALS DISCUSS GLOBAL SECURITY
FROM: U.S. DEFENSE DEPARTMENT
Release No: NR-571-14
November 14, 2014
November 14, 2014
Readout of Deputy Secretary of Defense Robert Work's meeting with the Canadian Deputy Minister of Defense Richard Fadden
Deputy Secretary of Defense Spokesperson Navy Lt. Cmdr. Courtney Hillson provided the following readout:
Deputy Secretary of Defense Robert Work met with the Canadian Deputy Minister of Defense Richard Fadden this afternoon at the Pentagon.
Work led off the meeting by extending his personal condolences for the loss of Warrant Officer Patrice Vincent and Corporal Nathan Cirillo last month.
The two defense leaders then discussed global security challenges and their collaboration on counter-ISIL operations in Iraq. Work commended Canada for its contributions, particularly in conducting air strikes against Islamic State of Iraq and the Levant (ISIL) targets, and the delivery of humanitarian aid to Kurdish forces in Northern Iraq.
Deputy Secretary Work and Deputy Minister Fadden also discussed the situation in Ukraine, noting their ongoing efforts to provide assistance to Ukraine and both nations' contributions to NATO reassurance measures.
Deputy Secretary Work provided Deputy Minister Fadden with an overview of the department's review of our nuclear enterprise. He highlighted that our nuclear arsenal is safe, secure, and effective and that the department is taking action to address the issues identified in the review.
They concluded the meeting by reaffirming their commitment to sustaining a strong bilateral relationship and to continue working together on issues that transverse their shared borders.
MAN INDICTED FOR ALLEGEDLY TEACHING CUSTOMERS TO LIE DURING POLYGRAPH EXAMINATIONS
FROM: U.S. JUSTICE DEPARTMENT
Friday, November 14, 2014
Owner of 'Polygraph.com' Indicted for Allegedly Training Customers to Lie During Federally Administered Polygraph Examinations
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” has been indicted on obstruction of justice and mail fraud charges for allegedly training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Mark Morgan of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Field Office made the announcement.
Douglas Williams, 69, of Norman, Oklahoma, was charged in a five-count indictment in the Western District of Oklahoma with mail fraud and obstruction. According to allegations in the indictment, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal law enforcement agencies, federal intelligence agencies, and state and local law enforcement agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
The indictment further alleges that Williams trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams is also alleged to have trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, is alleged to have instructed the individuals to deny having received his polygraph training.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Mark Angehr and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Friday, November 14, 2014
Owner of 'Polygraph.com' Indicted for Allegedly Training Customers to Lie During Federally Administered Polygraph Examinations
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” has been indicted on obstruction of justice and mail fraud charges for allegedly training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Mark Morgan of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Field Office made the announcement.
Douglas Williams, 69, of Norman, Oklahoma, was charged in a five-count indictment in the Western District of Oklahoma with mail fraud and obstruction. According to allegations in the indictment, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal law enforcement agencies, federal intelligence agencies, and state and local law enforcement agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
The indictment further alleges that Williams trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams is also alleged to have trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, is alleged to have instructed the individuals to deny having received his polygraph training.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Mark Angehr and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
CATHERINE NOVELLI'S REMARKS ON CONNECTIVITY AND POLICY
FROM: THE STATE DEPARTMENT
Policy Choices for a Connected World
Remarks
Catherine A. Novelli
Under Secretary for Economic Growth, Energy, and the Environment
University of Pretoria
Pretoria, South Africa
November 13, 2014
Good afternoon. I am delighted to be here to speak at this distinguished university and to visit your beautiful country. Thank you so much for inviting me. South Africa is the last stop on an Africa trip that included Tanzania and Kenya. Along the way, I’ve seen incredible energy and dynamism.
I’d like to speak today about a new economic reality and the policy choices we all face. These choices are in front of every government, business, university, and individual as they determine their economic future. The reality is, the world is more connected than ever before, with goods, services, information, people, and financial resources crossing borders at an unprecedented rate.
Before this speech and after it – perhaps during it – you will be looking at mobile devices, tapping into the internet, engaging in social media, and conducting business and commercial transactions on line. The object in your hand, perhaps a smart phone, is the result of a manufacturing process that started with innovation and design at various locations around the world, manufacturing at a host of other sites, and distribution and marketing from even different corners of the globe.
That’s the reality of today’s world, whether you are in South Africa, Kenya and Tanzania – as I was in recent days – or Washington, DC, or London or Tokyo. Global supply chains have come to define the way we do business in today’s economy.
The Connected World
McKinsey Global Institute recently wrote that cross-border flows of goods and services totaled $26 trillion in 2012. This represents 36 percent of global gross domestic product, more than 50 percent larger than 20 years ago. About half of those flows are knowledge-intensive, compared to labor-intensive, and the proportion is growing. Intermediate goods – ones that are incorporated into a finished product—have become an ever-increasing proportion of trade. These goods in turn are fueling exports from the countries that have imported them. Over a quarter of the total value of global exports is made up of intermediate imports, and this share has nearly doubled since 1970. These statistics bring to light the changing nature of business. Older models of single-country, soup-to-nuts manufacturing arrangements are giving way to globally integrated supply chains. Innovation and design come from a worldwide network of research and development. Raw materials and components flow from site to site, supported by worldwide procurement systems, logistic hubs and warehousing. Marketing and financial services may be at other locales. Consumers are targeted for sales around the globe.
How Countries Can Take Advantage of Value Chains
So what are the implications for countries, companies and citizens of a world where global value chains are increasingly dominating trade? What policies should countries follow to benefit the most from value chains? I would suggest that countries need to focus on five policy areas as they enable their citizens to fully reap the benefits of today’s connected world.
First, open markets facilitated by fast customs procedures, international product standards and modern infrastructure is critical. Supply chain production is more complex than traditional export systems, with more import and export transactions for each unit of value added. This means that as goods and services move across multiple borders on their way to the final market, even small barriers can add up and affect the competitiveness of a product.
In the connected world, policies that may have offered protection to domestic firms in an earlier era, like import substitution, local content requirements, or data localization obligations, now make them less attractive as supply chain partners. An OECD study of local content requirements, found that local content requirements not only made countries less innovative, these requirements actually harmed the domestic market by raising prices for the public for products of lesser quality.
Because of just-in time production, concentrating on bread and butter trade facilitation issues like customs procedures, transportation and modern infrastructure is all the more important. Since products need to be sold in many markets, adhering to international standards is essential for their international viability.
Second, countries need to adopt legal and regulatory processes for doing business that are transparent, predictable, streamlined and include input from all stakeholders. The ability for investors to enforce contracts, and high standards for labor and environmental protections along with an intolerance for corruption are all key considerations for businesses in deciding where to locate or source.
I have heard some voices suggest that these “doing business” issues don’t matter, and that companies merely want to find the lowest labor costs. But in my experience, that’s not true. The ability to do business transparently matters a great deal to the bottom line. Morever, branded companies value their brand image, and don’t want to risk harming it due to scandals over labor or environmental conditions. Nor do they want to be in the position of being labor and environment regulators. Besides the moral issues surrounding poor labor and environmental enforcement, the need to constantly oversee these practices among suppliers when countries are not policing them themselves adds a great deal of cost.
Fostering Global Collaboration Through the Internet
Third, an open Internet, access to broadband, and free flows of data are essential to competitiveness. As I mentioned earlier, global supply chains are dynamic and highly collaborative, with teams of suppliers and purchasers from various stages of the value chain working together across borders to solve design, manufacturing, and marketing problems. This really is the essence of today’s connected world. This cannot occur without internet.
The best way to unleash the creativity and ingenuity of your people, your companies, and your universities is to let them connect with others to develop new ideas and start new businesses.
There is an inaccurate perception that the Internet mostly benefits industrialized countries. The truth is that the Internet’s economic benefits are increasingly shifting to the developing world. The Internet economy is growing at 15 to 25 percent per year in developing countries, double the rate in the developed world. In Turkey, for example, smaller businesses that use the web have experienced revenue growth 22 percent higher than those that do not. Here in South Africa, Ronnie Apteker founded the first Internet service provider and enabled countless new technology businesses. I am looking forward to meeting some of those new entrepreneurs tomorrow.
A recent report by the American think tank, the Brookings Institution, showed how the internet and cross-border data flows are providing opportunities for small and medium-sized enterprises. The report notes that SMEs on eBay are almost as likely to export as large businesses and, in fact, over 80 percent of SMEs export to five or more countries.
Fourth, strong intellectual property protection allows countries to be part of a higher-value global supply chain. At a recent conference in Washington, General Electric noted that it maintains research and development centers in Shanghai, Bangalore, Munich, Rio de Janeiro and New York. Many other international firms have similar R&D footprints. This geographic diversity allows for an R&D operation that, given time zones, literally never stops. Companies look at many factors when considering where to locate their R&D centers, including the level of education, vocational training, and scientific collaboration. But the level of intellectual property protection is also critical.
Closely related to this is a fifth policy— an open market for services. We often think of trade as the physical movement of goods from place to place. But in today’s global economy, knowledge-intensive trade and investment, particularly in the services sector, plays an increasingly central role.
Economists from the Organization for Economic Cooperation and Development have found that services now constitute 50% of the manufacturing process. Insurance, accounting and other financial services, and creative and design services, are all integral parts of supply chains. But in many countries, markets for these services are closed, or heavily regulated. If the goal is to maximize participation in global value chains, closed market policies like these no longer make sense.
Regional Trade Liberalization
The policies I have set forth are important, but not sufficient to be globally competitive. In addition to being islands of good practices, countries need to join together to create regions where those good practices are integrated.
Last August, I chaired a roundtable on global supply chains at the U.S-Africa Leaders Summit in Washington. We invited corporate representatives as well as trade, investment, and economic ministers from African countries.
One of the most interesting themes was the need to create regional markets in Africa. Companies were clear that the markets in many individual countries in Africa are too small to support operations just for that market. That does not mean that there are no opportunities for smaller countries to benefit from the global supply chain. In fact, recent research indicates that, on average, regional trade agreements increase member countries’ trade about 86 percent within 15 years.
The European Union is perhaps the largest, best known and most successful example or regional integration. There is also the North American Free Trade Agreement, which just celebrated its 20th anniversary. With Asia, we are now negotiating a Trans-Pacific Partnership, and with Europe we have launched talks on a Transatlantic Trade and Investment Partnership.
Arrangements such as these, which lower barriers to trade and investment, deliver a big boost to commerce in member countries. These arrangements also offer ready-made hubs for setting up a global supply chain. Countries who haven’t established some type of true regional integration will find it harder to compete for the investment that a global supply chain brings.
In Africa, regional organizations like the Economic Community of West African States, the East African Community, and the Southern African Customs Union are working to create regional integration and address barriers so that countries can achieve economies of scale and maximize their comparative advantages. Nelson Mandela recognized the importance of looking at regional integration when he conceived of Development Corridors along cross-border transportation routes.
Africa and Supply Chains
Here in South Africa, I had a wonderful illustration of the connected world yesterday at the Ford factory in Silverton. It is an American investment, creating jobs in South Africa. Inputs, like raw materials and components, arrive from various locations around the world. Local workers assemble those components and the factory exports to other African countries and to European markets.
The United States recognizes Africa as a dynamic continent where economies are growing and innovation is taking root. Many African countries are reaping the benefits of economic reforms, better governance and social investments. We would like to be a part of this positive change and contribute to Africa taking its place in the global supply chain, so that the people of Africa can reap the benefits of global growth.
The United States is supporting Africa’s growth through the African Growth and Opportunity Act (AGOA), the Trade Africa Initiative, and similar efforts. The Millennium Challenge Corporation, for example, has issued grants of almost $10 billion to support projects in sectors like transportation, education, and property rights and land policy. Through President Obama’s Power Africa initiative, a number of U.S. agencies are making available $7 billion in financial assistance to double access to power in six sub-Saharan African countries.
Some continue to argue that African nations need “protectionism” to compete. I disagree. Africans are strong, resilient, and ingenious, and I have seen in my meetings with entrepreneurs, businesses, and students people who can go toe-to-toe with the most competitive companies in the world. We need to go forward together towards openness, high standards, and opportunity for all of our citizens.
Thank you very much.
Policy Choices for a Connected World
Remarks
Catherine A. Novelli
Under Secretary for Economic Growth, Energy, and the Environment
University of Pretoria
Pretoria, South Africa
November 13, 2014
Good afternoon. I am delighted to be here to speak at this distinguished university and to visit your beautiful country. Thank you so much for inviting me. South Africa is the last stop on an Africa trip that included Tanzania and Kenya. Along the way, I’ve seen incredible energy and dynamism.
I’d like to speak today about a new economic reality and the policy choices we all face. These choices are in front of every government, business, university, and individual as they determine their economic future. The reality is, the world is more connected than ever before, with goods, services, information, people, and financial resources crossing borders at an unprecedented rate.
Before this speech and after it – perhaps during it – you will be looking at mobile devices, tapping into the internet, engaging in social media, and conducting business and commercial transactions on line. The object in your hand, perhaps a smart phone, is the result of a manufacturing process that started with innovation and design at various locations around the world, manufacturing at a host of other sites, and distribution and marketing from even different corners of the globe.
That’s the reality of today’s world, whether you are in South Africa, Kenya and Tanzania – as I was in recent days – or Washington, DC, or London or Tokyo. Global supply chains have come to define the way we do business in today’s economy.
The Connected World
McKinsey Global Institute recently wrote that cross-border flows of goods and services totaled $26 trillion in 2012. This represents 36 percent of global gross domestic product, more than 50 percent larger than 20 years ago. About half of those flows are knowledge-intensive, compared to labor-intensive, and the proportion is growing. Intermediate goods – ones that are incorporated into a finished product—have become an ever-increasing proportion of trade. These goods in turn are fueling exports from the countries that have imported them. Over a quarter of the total value of global exports is made up of intermediate imports, and this share has nearly doubled since 1970. These statistics bring to light the changing nature of business. Older models of single-country, soup-to-nuts manufacturing arrangements are giving way to globally integrated supply chains. Innovation and design come from a worldwide network of research and development. Raw materials and components flow from site to site, supported by worldwide procurement systems, logistic hubs and warehousing. Marketing and financial services may be at other locales. Consumers are targeted for sales around the globe.
How Countries Can Take Advantage of Value Chains
So what are the implications for countries, companies and citizens of a world where global value chains are increasingly dominating trade? What policies should countries follow to benefit the most from value chains? I would suggest that countries need to focus on five policy areas as they enable their citizens to fully reap the benefits of today’s connected world.
First, open markets facilitated by fast customs procedures, international product standards and modern infrastructure is critical. Supply chain production is more complex than traditional export systems, with more import and export transactions for each unit of value added. This means that as goods and services move across multiple borders on their way to the final market, even small barriers can add up and affect the competitiveness of a product.
In the connected world, policies that may have offered protection to domestic firms in an earlier era, like import substitution, local content requirements, or data localization obligations, now make them less attractive as supply chain partners. An OECD study of local content requirements, found that local content requirements not only made countries less innovative, these requirements actually harmed the domestic market by raising prices for the public for products of lesser quality.
Because of just-in time production, concentrating on bread and butter trade facilitation issues like customs procedures, transportation and modern infrastructure is all the more important. Since products need to be sold in many markets, adhering to international standards is essential for their international viability.
Second, countries need to adopt legal and regulatory processes for doing business that are transparent, predictable, streamlined and include input from all stakeholders. The ability for investors to enforce contracts, and high standards for labor and environmental protections along with an intolerance for corruption are all key considerations for businesses in deciding where to locate or source.
I have heard some voices suggest that these “doing business” issues don’t matter, and that companies merely want to find the lowest labor costs. But in my experience, that’s not true. The ability to do business transparently matters a great deal to the bottom line. Morever, branded companies value their brand image, and don’t want to risk harming it due to scandals over labor or environmental conditions. Nor do they want to be in the position of being labor and environment regulators. Besides the moral issues surrounding poor labor and environmental enforcement, the need to constantly oversee these practices among suppliers when countries are not policing them themselves adds a great deal of cost.
Fostering Global Collaboration Through the Internet
Third, an open Internet, access to broadband, and free flows of data are essential to competitiveness. As I mentioned earlier, global supply chains are dynamic and highly collaborative, with teams of suppliers and purchasers from various stages of the value chain working together across borders to solve design, manufacturing, and marketing problems. This really is the essence of today’s connected world. This cannot occur without internet.
The best way to unleash the creativity and ingenuity of your people, your companies, and your universities is to let them connect with others to develop new ideas and start new businesses.
There is an inaccurate perception that the Internet mostly benefits industrialized countries. The truth is that the Internet’s economic benefits are increasingly shifting to the developing world. The Internet economy is growing at 15 to 25 percent per year in developing countries, double the rate in the developed world. In Turkey, for example, smaller businesses that use the web have experienced revenue growth 22 percent higher than those that do not. Here in South Africa, Ronnie Apteker founded the first Internet service provider and enabled countless new technology businesses. I am looking forward to meeting some of those new entrepreneurs tomorrow.
A recent report by the American think tank, the Brookings Institution, showed how the internet and cross-border data flows are providing opportunities for small and medium-sized enterprises. The report notes that SMEs on eBay are almost as likely to export as large businesses and, in fact, over 80 percent of SMEs export to five or more countries.
Fourth, strong intellectual property protection allows countries to be part of a higher-value global supply chain. At a recent conference in Washington, General Electric noted that it maintains research and development centers in Shanghai, Bangalore, Munich, Rio de Janeiro and New York. Many other international firms have similar R&D footprints. This geographic diversity allows for an R&D operation that, given time zones, literally never stops. Companies look at many factors when considering where to locate their R&D centers, including the level of education, vocational training, and scientific collaboration. But the level of intellectual property protection is also critical.
Closely related to this is a fifth policy— an open market for services. We often think of trade as the physical movement of goods from place to place. But in today’s global economy, knowledge-intensive trade and investment, particularly in the services sector, plays an increasingly central role.
Economists from the Organization for Economic Cooperation and Development have found that services now constitute 50% of the manufacturing process. Insurance, accounting and other financial services, and creative and design services, are all integral parts of supply chains. But in many countries, markets for these services are closed, or heavily regulated. If the goal is to maximize participation in global value chains, closed market policies like these no longer make sense.
Regional Trade Liberalization
The policies I have set forth are important, but not sufficient to be globally competitive. In addition to being islands of good practices, countries need to join together to create regions where those good practices are integrated.
Last August, I chaired a roundtable on global supply chains at the U.S-Africa Leaders Summit in Washington. We invited corporate representatives as well as trade, investment, and economic ministers from African countries.
One of the most interesting themes was the need to create regional markets in Africa. Companies were clear that the markets in many individual countries in Africa are too small to support operations just for that market. That does not mean that there are no opportunities for smaller countries to benefit from the global supply chain. In fact, recent research indicates that, on average, regional trade agreements increase member countries’ trade about 86 percent within 15 years.
The European Union is perhaps the largest, best known and most successful example or regional integration. There is also the North American Free Trade Agreement, which just celebrated its 20th anniversary. With Asia, we are now negotiating a Trans-Pacific Partnership, and with Europe we have launched talks on a Transatlantic Trade and Investment Partnership.
Arrangements such as these, which lower barriers to trade and investment, deliver a big boost to commerce in member countries. These arrangements also offer ready-made hubs for setting up a global supply chain. Countries who haven’t established some type of true regional integration will find it harder to compete for the investment that a global supply chain brings.
In Africa, regional organizations like the Economic Community of West African States, the East African Community, and the Southern African Customs Union are working to create regional integration and address barriers so that countries can achieve economies of scale and maximize their comparative advantages. Nelson Mandela recognized the importance of looking at regional integration when he conceived of Development Corridors along cross-border transportation routes.
Africa and Supply Chains
Here in South Africa, I had a wonderful illustration of the connected world yesterday at the Ford factory in Silverton. It is an American investment, creating jobs in South Africa. Inputs, like raw materials and components, arrive from various locations around the world. Local workers assemble those components and the factory exports to other African countries and to European markets.
The United States recognizes Africa as a dynamic continent where economies are growing and innovation is taking root. Many African countries are reaping the benefits of economic reforms, better governance and social investments. We would like to be a part of this positive change and contribute to Africa taking its place in the global supply chain, so that the people of Africa can reap the benefits of global growth.
The United States is supporting Africa’s growth through the African Growth and Opportunity Act (AGOA), the Trade Africa Initiative, and similar efforts. The Millennium Challenge Corporation, for example, has issued grants of almost $10 billion to support projects in sectors like transportation, education, and property rights and land policy. Through President Obama’s Power Africa initiative, a number of U.S. agencies are making available $7 billion in financial assistance to double access to power in six sub-Saharan African countries.
Some continue to argue that African nations need “protectionism” to compete. I disagree. Africans are strong, resilient, and ingenious, and I have seen in my meetings with entrepreneurs, businesses, and students people who can go toe-to-toe with the most competitive companies in the world. We need to go forward together towards openness, high standards, and opportunity for all of our citizens.
Thank you very much.
STATE DEPARTMENT FACT SHEET: BUREAU OF POPULATION, REFUGEES, AND MIGRATION
FROM: U.S. STATE DEPARTMENT
Fact Sheet
Bureau of Population, Refugees, and Migration
November 14, 2014
U.S. DEPARTMENT OF STATE and U.S. DEPARTMENT OF HOMELAND SECURITY
The United States is establishing an in-country refugee/parole program in El Salvador, Guatemala, and Honduras to provide a safe, legal, and orderly alternative to the dangerous journey that some children are currently undertaking to the United States. This program will allow certain parents who are lawfully present in the United States to request access to the U.S. Refugee Admissions Program for their children still in one of these three countries. Children who are found ineligible for refugee admission but still at risk of harm may be considered for parole on a case-by-case basis. The refugee/parole program will not be a pathway for undocumented parents to bring their children to the United States, but instead, the program will provide certain vulnerable, at-risk children an opportunity to be reunited with parents lawfully resident in the United States.
Applications for this program are initiated in the United States. Beginning in December 2014, a parent lawfully present in the United States will be able to file Department of State form DS-7699 requesting a refugee resettlement interview for unmarried children under 21 in El Salvador, Guatemala, or Honduras. Under certain circumstances, if the second parent resides with the child in the home country and is currently married to the lawfully present parent in the United States, the second parent may be added to the child’s petition and considered for refugee status, and if denied refugee status, for parole. Form DS-7699 must be filed with the assistance of a designated resettlement agency that works with the U.S. Department of State’s Bureau of Population, Refugees, and Migration to help resettle refugees in the United States. The form will not be available on the Department of State website to the general public and cannot be completed without the assistance of a Department of State-funded resettlement agency. These resettlement agencies are located in more than 180 communities throughout the United States. When the program is launched, the Department of State will provide information on how to contact one of these agencies to initiate an application.
Once a form DS-7699 has been filed, the child in his/her home country will be assisted through the program by the International Organization for Migration (IOM), which manages the U.S. Resettlement Support Center (RSC) in Latin America. IOM personnel from the RSC will contact each child directly and in the order in which the forms filed by lawfully present parents have been received by the U.S. Department of State. IOM will invite the children to attend pre-screening interviews in their country of origin in order to prepare them for a refugee interview with the Department of Homeland Security (DHS). DNA relationship testing will be required to confirm the biological relationship between the parent in the United States and the in-country child. After the IOM pre-screening interview but before the DHS interview, the lawfully present parent in the United States will be notified by IOM via the resettlement agency about how to submit DNA evidence of the relationship with their claimed child(ren) in El Salvador, Guatemala, or Honduras. If DNA relationship testing confirms the claimed relationship(s), IOM will schedule the DHS refugee interview.
DHS will conduct interviews with each child to determine whether he or she is eligible for refugee status and admissible to the United States. All applicants must complete all required security checks and obtain a medical clearance before they are approved to travel as a refugee to the United States. IOM will arrange travel for the refugee(s) to the United States. The parent of the child will sign a promissory note agreeing to repay the cost of travel to the United States. Approved refugees will be eligible for the same support provided to all refugees resettled in the United States, including assignment to a resettlement agency that will assist with reception and placement, and assistance registering children in school.
Applicants found by DHS to be ineligible for refugee status in the United States will be considered on a case-by-case basis for parole, which is a mechanism to allow someone who is otherwise inadmissible to come to the United States for urgent humanitarian reasons or significant public benefit. In order for the applicant(s) to be considered for parole, the parent in the United States will need to submit a Form I-134, Affidavit of Support, with supporting documentation to DHS. An individual considered for parole may be eligible for parole if DHS finds that the individual is at risk of harm, he/she clears all background vetting, there is no serious derogatory information, and someone has committed to financially support the individual while he/she is in the United States. Those children and any eligible parent considered for parole will be responsible for obtaining and paying for a medical clearance. An individual authorized parole will not be eligible for a travel loan but must book and pay for the flight to the United States. Parole is temporary and does not confer any permanent legal immigration status or path to permanent legal immigration status in the United States. Parolees are not eligible for medical and other benefits upon arrival in the United States, but are eligible to attend school and/or apply for employment authorization. Individuals authorized parole under this program generally will be authorized parole for an initial period of two years and may request renewal.
It is anticipated that a relatively small number of children from Central America will be admitted to the United States as refugees in FY 2015, given the anticipated December launch and the length of time it takes to be processed for U.S. refugee admission. Any child or parent admitted as a refugee will be included in the Latin America/Caribbean regional allocation of the U.S. Refugee Admissions Program, which is 4,000 for FY 2015. If needed, there is some flexibility within the U.S. Refugee Admissions Program to accommodate a higher than anticipated number from Latin America in FY 2015.
Fact Sheet
Bureau of Population, Refugees, and Migration
November 14, 2014
U.S. DEPARTMENT OF STATE and U.S. DEPARTMENT OF HOMELAND SECURITY
The United States is establishing an in-country refugee/parole program in El Salvador, Guatemala, and Honduras to provide a safe, legal, and orderly alternative to the dangerous journey that some children are currently undertaking to the United States. This program will allow certain parents who are lawfully present in the United States to request access to the U.S. Refugee Admissions Program for their children still in one of these three countries. Children who are found ineligible for refugee admission but still at risk of harm may be considered for parole on a case-by-case basis. The refugee/parole program will not be a pathway for undocumented parents to bring their children to the United States, but instead, the program will provide certain vulnerable, at-risk children an opportunity to be reunited with parents lawfully resident in the United States.
Applications for this program are initiated in the United States. Beginning in December 2014, a parent lawfully present in the United States will be able to file Department of State form DS-7699 requesting a refugee resettlement interview for unmarried children under 21 in El Salvador, Guatemala, or Honduras. Under certain circumstances, if the second parent resides with the child in the home country and is currently married to the lawfully present parent in the United States, the second parent may be added to the child’s petition and considered for refugee status, and if denied refugee status, for parole. Form DS-7699 must be filed with the assistance of a designated resettlement agency that works with the U.S. Department of State’s Bureau of Population, Refugees, and Migration to help resettle refugees in the United States. The form will not be available on the Department of State website to the general public and cannot be completed without the assistance of a Department of State-funded resettlement agency. These resettlement agencies are located in more than 180 communities throughout the United States. When the program is launched, the Department of State will provide information on how to contact one of these agencies to initiate an application.
Once a form DS-7699 has been filed, the child in his/her home country will be assisted through the program by the International Organization for Migration (IOM), which manages the U.S. Resettlement Support Center (RSC) in Latin America. IOM personnel from the RSC will contact each child directly and in the order in which the forms filed by lawfully present parents have been received by the U.S. Department of State. IOM will invite the children to attend pre-screening interviews in their country of origin in order to prepare them for a refugee interview with the Department of Homeland Security (DHS). DNA relationship testing will be required to confirm the biological relationship between the parent in the United States and the in-country child. After the IOM pre-screening interview but before the DHS interview, the lawfully present parent in the United States will be notified by IOM via the resettlement agency about how to submit DNA evidence of the relationship with their claimed child(ren) in El Salvador, Guatemala, or Honduras. If DNA relationship testing confirms the claimed relationship(s), IOM will schedule the DHS refugee interview.
DHS will conduct interviews with each child to determine whether he or she is eligible for refugee status and admissible to the United States. All applicants must complete all required security checks and obtain a medical clearance before they are approved to travel as a refugee to the United States. IOM will arrange travel for the refugee(s) to the United States. The parent of the child will sign a promissory note agreeing to repay the cost of travel to the United States. Approved refugees will be eligible for the same support provided to all refugees resettled in the United States, including assignment to a resettlement agency that will assist with reception and placement, and assistance registering children in school.
Applicants found by DHS to be ineligible for refugee status in the United States will be considered on a case-by-case basis for parole, which is a mechanism to allow someone who is otherwise inadmissible to come to the United States for urgent humanitarian reasons or significant public benefit. In order for the applicant(s) to be considered for parole, the parent in the United States will need to submit a Form I-134, Affidavit of Support, with supporting documentation to DHS. An individual considered for parole may be eligible for parole if DHS finds that the individual is at risk of harm, he/she clears all background vetting, there is no serious derogatory information, and someone has committed to financially support the individual while he/she is in the United States. Those children and any eligible parent considered for parole will be responsible for obtaining and paying for a medical clearance. An individual authorized parole will not be eligible for a travel loan but must book and pay for the flight to the United States. Parole is temporary and does not confer any permanent legal immigration status or path to permanent legal immigration status in the United States. Parolees are not eligible for medical and other benefits upon arrival in the United States, but are eligible to attend school and/or apply for employment authorization. Individuals authorized parole under this program generally will be authorized parole for an initial period of two years and may request renewal.
It is anticipated that a relatively small number of children from Central America will be admitted to the United States as refugees in FY 2015, given the anticipated December launch and the length of time it takes to be processed for U.S. refugee admission. Any child or parent admitted as a refugee will be included in the Latin America/Caribbean regional allocation of the U.S. Refugee Admissions Program, which is 4,000 for FY 2015. If needed, there is some flexibility within the U.S. Refugee Admissions Program to accommodate a higher than anticipated number from Latin America in FY 2015.
Saturday, November 15, 2014
2 JAPANESE EXECUTIVES INDICTED IN PRICE FIXING, RIGGING BIDS CASE INVOLVING BEARINGS
FROM: U.S. JUSTICE DEPARTMENT
Friday, November 14, 2014
Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig Bids
A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.
The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, “Toyota”) in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.
“The division will continue to pursue executives who violate the antitrust laws,” said Assistant Attorney General Bill Baer for the Antitrust Division. “American consumers deserve the benefit of free competition between auto parts suppliers.”
Hirose was a group sales manager in NSK’s Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011. Iwami was a Section Manager, then General Manager, in Jtekt’s Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.
The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere. Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.
NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy. Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan. On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy. Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.
Including Hirose and Iwami, 46 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.
Hirose and Iwami are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office.
Friday, November 14, 2014
Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig Bids
A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.
The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, “Toyota”) in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.
“The division will continue to pursue executives who violate the antitrust laws,” said Assistant Attorney General Bill Baer for the Antitrust Division. “American consumers deserve the benefit of free competition between auto parts suppliers.”
Hirose was a group sales manager in NSK’s Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011. Iwami was a Section Manager, then General Manager, in Jtekt’s Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.
The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere. Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.
NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy. Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan. On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy. Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.
Including Hirose and Iwami, 46 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.
Hirose and Iwami are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office.
DOD SECRETARY SAYS ISIL "STALLED"
FROM: U.S. DEFENSE DEPARTMENT
Hagel: ISIL Degraded But Remains Dangerous
By Air Force Tech. Sgt. Jake Richmond
DoD News, Defense Media Activity
WASHINGTON, Nov. 13, 2014 – United States and coalition forces have made progress in recent months against the Islamic State in Iraq and the Levant, but the campaign will be “a long and difficult struggle,” Defense Secretary Chuck Hagel told Congress here today.
“We are three months into a multi-year effort,” Hagel said in testimony before the House Armed Services Committee. In some parts of Iraq, ISIL’s advance has been stalled and even reversed by Iraqi, Kurdish and tribal forces supported by U.S. and coalition air strikes. But ISIL still represents a “serious threat” to American interests, Hagel said.
The secretary stressed the importance of sustaining the regional and global coalition, which includes 16 more countries since Hagel’s last congressional testimony in September. More than 60 nations are now contributing to the fight against ISIL, Hagel said, with assistance ranging from air support to training to humanitarian aid.
“Coalition partners have carried out 130 airstrikes against ISIL in both Iraq and Syria,” Hagel said. “Coalition nations have also pledged hundreds of personnel to support our mission to train, advise, assist, and help build the capacity of Iraqi forces.”
Methods and Results
The comprehensive strategy to stop ISIL also focuses on supporting inclusive governance, undercutting ISIL’s flow of resources, countering ISIL’s messaging, and constricting the flow of foreign fighters, Hagel said.
The combined effort has yielded results in degrading and destroying elements of ISIL’s warfighting capacity and denying safe haven to its combatants. The secretary said that ISIL fighters have been forced to maneuver in smaller groups, hide their large equipment, and change their communication methods.
“Sustaining this pressure on ISIL will help provide time and space for Iraq to reconstitute its forces and continue going on the offense,” Hagel explained. “And as Iraqi forces build strength, the tempo and intensity of our coalition’s air campaign will accelerate in tandem.”
Governmental Factors
However, ISIL “will not be defeated through military force alone,” Hagel said. In Iraq, he said, “much more needs to be done to achieve political reform.” And in Syria, since there is no partner government to work with, Hagel said, military strategy will demand time, patience and perseverance to deliver results.
“The position of the United States remains that [Syrian President Bashar] Assad has lost the legitimacy to govern,” Hagel said. The U.S. and coalition goal, he explained, is to ultimately create conditions for a political settlement in Syria.
“We are still at the front end of our campaign against ISIL,” Hagel told the House panel. “Congressional support -- your support -- is vital for this campaign to succeed.”
Hagel: ISIL Degraded But Remains Dangerous
By Air Force Tech. Sgt. Jake Richmond
DoD News, Defense Media Activity
WASHINGTON, Nov. 13, 2014 – United States and coalition forces have made progress in recent months against the Islamic State in Iraq and the Levant, but the campaign will be “a long and difficult struggle,” Defense Secretary Chuck Hagel told Congress here today.
“We are three months into a multi-year effort,” Hagel said in testimony before the House Armed Services Committee. In some parts of Iraq, ISIL’s advance has been stalled and even reversed by Iraqi, Kurdish and tribal forces supported by U.S. and coalition air strikes. But ISIL still represents a “serious threat” to American interests, Hagel said.
The secretary stressed the importance of sustaining the regional and global coalition, which includes 16 more countries since Hagel’s last congressional testimony in September. More than 60 nations are now contributing to the fight against ISIL, Hagel said, with assistance ranging from air support to training to humanitarian aid.
“Coalition partners have carried out 130 airstrikes against ISIL in both Iraq and Syria,” Hagel said. “Coalition nations have also pledged hundreds of personnel to support our mission to train, advise, assist, and help build the capacity of Iraqi forces.”
Methods and Results
The comprehensive strategy to stop ISIL also focuses on supporting inclusive governance, undercutting ISIL’s flow of resources, countering ISIL’s messaging, and constricting the flow of foreign fighters, Hagel said.
The combined effort has yielded results in degrading and destroying elements of ISIL’s warfighting capacity and denying safe haven to its combatants. The secretary said that ISIL fighters have been forced to maneuver in smaller groups, hide their large equipment, and change their communication methods.
“Sustaining this pressure on ISIL will help provide time and space for Iraq to reconstitute its forces and continue going on the offense,” Hagel explained. “And as Iraqi forces build strength, the tempo and intensity of our coalition’s air campaign will accelerate in tandem.”
Governmental Factors
However, ISIL “will not be defeated through military force alone,” Hagel said. In Iraq, he said, “much more needs to be done to achieve political reform.” And in Syria, since there is no partner government to work with, Hagel said, military strategy will demand time, patience and perseverance to deliver results.
“The position of the United States remains that [Syrian President Bashar] Assad has lost the legitimacy to govern,” Hagel said. The U.S. and coalition goal, he explained, is to ultimately create conditions for a political settlement in Syria.
“We are still at the front end of our campaign against ISIL,” Hagel told the House panel. “Congressional support -- your support -- is vital for this campaign to succeed.”
DEFENSE SECRETARY HAGEL ANNOUNCES INCREASED INVESTMENT IN NUCLEAR DETERRENT TO FIX PROBLEMS
FROM: U.S. DEFENSE DEPARTMENT
Hagel Announces Changes to U.S. Nuclear Deterrent Enterprise
By Jim Garamone
DoD News, Defense Media Activity
WASHINGTON, Nov. 14, 2014 – Defense Secretary Chuck Hagel has announced a series of measures to increase investment in America’s nuclear deterrent after reviews found evidence of systemic problems in the enterprise.
Hagel announced the changes at a Pentagon press conference today before traveling to Minot Air Force Base, North Dakota, to speak with missileers about them. The changes are the result of internal and external reviews Hagel ordered after a series of Associated Press stories disclosed problems in the nuclear force.
Retired Air Force Gen. Larry D. Welch and retired Navy Adm. John C. Harvey Jr. co-chaired the external review.
Nuclear Arsenal Safe
Hagel prefaced his remarks by assuring Americans that the nuclear arsenal is safe and secure. It can and must be better though, he said. “As long as we have nuclear weapons, we will and we must ensure that they are safe, secure and effective,” Hagel said.
Hagel said underfunding and a focus on two wars allowed the status of the nuclear deterrent to degrade. Service members accomplished the missions in the nuclear enterprise thanks to their own “heroic efforts.”
“The internal and external reviews I ordered show that a consistent lack of investment and support for our nuclear forces over far too many years has left us with too little margin to cope with mounting stresses,” Hagel said.
The reviews found evidence of systematic problems. These include manning, infrastructure and skill deficiencies. The reviews found “a culture of micromanagement and over-inspection,” the secretary said. Finally, the reviews found inadequate communication, follow-up and accountability.
Root Cause
“The root cause has been a lack of sustained focus, attention and resources, resulting in a pervasive sense that a career in the nuclear enterprise offers too few opportunities for growth and advancement,” Hagel said.
The secretary vowed to hold senior leaders accountable to ensure words match actions. “We must change the cultural perception of a nuclear enterprise, which has particularly suffered in the Air Force,” he said. “We must restore the prestige that attracted the brightest minds of the Cold War era, so our most talented young men and women see the nuclear pathway as promising in value.”
As part of this, the commander of the Air Force Global Strike Command will now be elevated to a four-star.
More funding is also crucial. The Air Force established a force improvement program for Global Strike Command and reallocated over $160 million in fiscal 2014 and $150 million in fiscal 2015. These will address some of the most urgent shortfalls. Hagel said missileers had to Fed-Ex a special wrench used in fastening warheads to missiles from base to base.
Some of the money will go to incentive pay for critical nuclear assignments.
Long-term Changes
Long-term changes are on the way, the secretary said. DoD is updating and standardizing inspections. The department wants to eliminate micromanagement, redundancies and administrative burdens that overtax the force and ultimately harm the mission.
“The Navy is reducing administrative distractions and is planning to both hire more than 2,500 workers and overhaul aging infrastructure at public shipyards, strategic weapons facilities and reactor training systems,” the secretary said.
The Air Force is planning construction to improve weapons storage facilities, will replace its Vietnam-era helicopters for ballistic missile security forces and is revamping training, evaluations and management of the nuclear force.
“Both services are elevating and reinforcing the nuclear mission, including in the budget request they’re preparing for fiscal year 2016,” Hagel said. “We will need to make billions of dollars of additional investments in the nuclear enterprise over the next five years.”
The secretary said the services are looking at a 10 percent increase in funding over five years. Today, the U.S. spends about $15 billion to $16 billion on our nuclear enterprise.
Hagel Announces Changes to U.S. Nuclear Deterrent Enterprise
By Jim Garamone
DoD News, Defense Media Activity
WASHINGTON, Nov. 14, 2014 – Defense Secretary Chuck Hagel has announced a series of measures to increase investment in America’s nuclear deterrent after reviews found evidence of systemic problems in the enterprise.
Hagel announced the changes at a Pentagon press conference today before traveling to Minot Air Force Base, North Dakota, to speak with missileers about them. The changes are the result of internal and external reviews Hagel ordered after a series of Associated Press stories disclosed problems in the nuclear force.
Retired Air Force Gen. Larry D. Welch and retired Navy Adm. John C. Harvey Jr. co-chaired the external review.
Nuclear Arsenal Safe
Hagel prefaced his remarks by assuring Americans that the nuclear arsenal is safe and secure. It can and must be better though, he said. “As long as we have nuclear weapons, we will and we must ensure that they are safe, secure and effective,” Hagel said.
Hagel said underfunding and a focus on two wars allowed the status of the nuclear deterrent to degrade. Service members accomplished the missions in the nuclear enterprise thanks to their own “heroic efforts.”
“The internal and external reviews I ordered show that a consistent lack of investment and support for our nuclear forces over far too many years has left us with too little margin to cope with mounting stresses,” Hagel said.
The reviews found evidence of systematic problems. These include manning, infrastructure and skill deficiencies. The reviews found “a culture of micromanagement and over-inspection,” the secretary said. Finally, the reviews found inadequate communication, follow-up and accountability.
Root Cause
“The root cause has been a lack of sustained focus, attention and resources, resulting in a pervasive sense that a career in the nuclear enterprise offers too few opportunities for growth and advancement,” Hagel said.
The secretary vowed to hold senior leaders accountable to ensure words match actions. “We must change the cultural perception of a nuclear enterprise, which has particularly suffered in the Air Force,” he said. “We must restore the prestige that attracted the brightest minds of the Cold War era, so our most talented young men and women see the nuclear pathway as promising in value.”
As part of this, the commander of the Air Force Global Strike Command will now be elevated to a four-star.
More funding is also crucial. The Air Force established a force improvement program for Global Strike Command and reallocated over $160 million in fiscal 2014 and $150 million in fiscal 2015. These will address some of the most urgent shortfalls. Hagel said missileers had to Fed-Ex a special wrench used in fastening warheads to missiles from base to base.
Some of the money will go to incentive pay for critical nuclear assignments.
Long-term Changes
Long-term changes are on the way, the secretary said. DoD is updating and standardizing inspections. The department wants to eliminate micromanagement, redundancies and administrative burdens that overtax the force and ultimately harm the mission.
“The Navy is reducing administrative distractions and is planning to both hire more than 2,500 workers and overhaul aging infrastructure at public shipyards, strategic weapons facilities and reactor training systems,” the secretary said.
The Air Force is planning construction to improve weapons storage facilities, will replace its Vietnam-era helicopters for ballistic missile security forces and is revamping training, evaluations and management of the nuclear force.
“Both services are elevating and reinforcing the nuclear mission, including in the budget request they’re preparing for fiscal year 2016,” Hagel said. “We will need to make billions of dollars of additional investments in the nuclear enterprise over the next five years.”
The secretary said the services are looking at a 10 percent increase in funding over five years. Today, the U.S. spends about $15 billion to $16 billion on our nuclear enterprise.
SECRETARY KERRY MAKES REMARKS WITH JORDANIAN FOREIGN MINISTER JUDEH
FROM: U.S. STATE DEPARTMENT
Remarks With Jordanian Foreign Minister Judeh After Their Meeting
Remarks
John Kerry
Secretary of State
Ministry of Foreign Affairs
Amman, Jordan
November 13, 2014
FOREIGN MINISTER JUDEH: (Via interpreter) In the name of Allah, the most gracious, the most merciful. At the outset, I would like to welcome a friend of His Majesty King Abdullah to Jordan, as well as to me personally, he – His Excellency, the Secretary of State of the United States of America. I do welcome him in this important visit and at this particular important moment. We have been honored today with a bilateral meeting as His Majesty King Abdullah received Secretary Kerry. And over the past 48 hours, they were – they covered different significant diplomatic deliberations and talks starting with the meetings with President Abbas yesterday. And today, His Majesty the King received Secretary of State, Mr. John Kerry.
And this evening, His Majesty the King, there was a bilateral – trilateral meeting where His Majesty met President Netanyahu – Prime Minister Netanyahu as well as Secretary of State. And they discussed coaxial issues, including Jerusalem and the Holy Shrines, and they took a lot of time. And their discussion and all the developments that have taken place over the recent few weeks were at the core of the issue and they have led to more instability.
His Majesty, during his meeting with Mr. Kerry this afternoon, explained Jordan’s position and the stance regarding the necessity of maintaining the status quo of the Holy Shrines, and they should not be touched or affected by any means. And this is part of the Hashemite custody of these Christian and Muslim sanctities in Jerusalem. And you are well aware also that when Jordan took some measures, there was confirmation on the part of the Israeli nation, Israeli state, and they showed commitment that they will maintain the status quo and respect the Jordanian role, and also respect the peace treaty between the two countries. And this is what also has been stated during the trilateral meeting this evening.
And you will listen also to the outcomes of this trilateral meeting. There are mechanisms and communications underway, including practical measures to de-escalate the tension and that maintain the status quo without getting it affected by such tensions.
During the bilateral meeting with Mr. Kerry, there were extensive negotiations regarding all the developments across the region. And we will go back to the Palestinian-Israeli problem. There were also discussions regarding the Syrian crisis and the U.S. as well as Jordan’s commitment to go back to the peaceful solution. It will be the only solution that will stop destruction, violence, instability, and the disintegration across the Syrian scene. This is Jordan’s stance, and it is in harmony with the U.S. stance as well.
There has been also talks about anti-terrorism and anti-extremism. And His Majesty the King stressed – and I also stressed during my negotiations and talks with Mr. Kerry – that this is the battle of moderate Islam against extremism and against (inaudible). Therefore, talks addressed this issue as well – including other issues.
With respect to the peace process, you are well aware that Mr. Kerry and the Obama Administration are committed to find a peaceful solution that addresses all the final status issues and that the two parties should come back to peace process. Mr. Kerry is a man of peace, and he has proven this through his intensive and focused efforts over one year as the Secretary of State and also for the case as the head of a committee at the Congress. He is a man who is renowned for his efforts inside the United States and outside the United States. And we have seen the Secretary of State in more than one year meeting all the stakeholders, particularly the Palestinian and Israeli sides. In addition, other countries who have high interest in peace, like the Hashemite Kingdom of Jordan and Republic of Egypt – he met with them scores of times. And I think the meetings that His Excellency Kerry has been unprecedented, and this confirms U.S. commitment and Mr. Kerry’s commitment to this peace process. He is now attempting to repave the way for coming back to a negotiation – and negotiations and to stop unilateral actions and measures, and we do support him in these efforts.
Once again, it is our high interest, and our national interest requires and entails the two-state solutions according to international legitimacy, especially the Arab Peace Initiative. Therefore, I would like to say that the trilateral meeting that was held this evening with the Israeli prime minister has already addressed the issue through the monitoring and follow-up of the Jordanian efforts. It also focused basically on the efforts being put forth by Mr. Kerry in order to revive the situation, to come back to negotiations. Another important aspect under the trilateral negotiations – a telephone conference with President Sisi was also conducted. And, as you know, Egypt is a basic and a key country when we talk about the issues of this region, as well as the Palestinian-Israeli peace process.
Therefore, I would like to conclude here that part – or a significant part of our talks today included the distinguished bilateral relationships, and we have extended our thanks for their continued efforts to the Hashemite Kingdom of Jordan, especially in helping Jordan to shoulder the tremendous burden. And through the U.S. economic assistance and help, we have been able to bear the situation. We have extended our thanks, and we have discussed so many aspects of these distinguished bilateral relationships.
I do welcome His Excellency, and I do extend my thanks for his efforts towards peace. And this is in harmony with His Majesty’s and the Kingdom’s position towards peace in order to have a stable region without terror and without turmoil. Thank you.
SECRETARY KERRY: Well, thank you very much. Good evening to everybody, and I am particularly grateful to my good friend, Nasser Judeh, who tonight I learned is the longest-serving foreign minister in the history of Jordan. So – and I asked him – I said, “Are you going to look like that on those portraits that are hanging out there?” And he said – that’s when he informed me that until recently, one of them was the longest serving. Now I’m standing beside him. So I’m honored to be here with him. And I have to tell you, he is a very valued partner and a very skilled diplomat, and somebody that we rely on for great collaboration and for very significant advice and counsel. And I thank him for his friendship very, very much.
I also particularly want to thank His Majesty King Abdullah, who is a gracious host, but also a courageous leader who understands how important this moment is and how critical it is to move forward. And I thank him for his exhaustive personal efforts in trying to resolve some of the region’s most difficult challenges, whether it’s Syria and Iraq, ISIL, or the longstanding conflict between the Israelis and the Palestinians. Through all of these challenges, one constant has been the enormously constructive role that Jordan has played under difficult circumstances in order to try to resolve those challenges. And we’re very grateful and we admire those efforts.
I had a very productive meeting this morning with President Abbas, and Foreign Minister Judeh and I, as he just mentioned to you, have come here directly from a trilateral meeting, a discussion with Prime Minister Netanyahu of Israel and with His Majesty King Abdullah of Jordan.
President Abbas and I this morning discussed constructive steps, real steps – not rhetoric, but real steps that people can take in order to de-escalate the situation and create a climate where we can move forward in a positive and constructive way. President Abbas strongly restated his firm commitment to nonviolence, and he made it clear that he will do everything possible to restore calm and to prevent the incitement of violence and to try to change the climate.
We particularly talked about the urgent need to address the greatest tension between Israelis and Palestinians beginning with the imperative, the absolute need to uphold the status quo regarding the administration of the Haram al-Sharif/Temple Mount and to take affirmative steps to prevent provocations and incitement. In the trilateral meeting this evening, we discussed, as Nasser has explained to you, specific and practical actions that both sides can take to restore calm. The Jordanians and the Israelis have agreed – the Jordanians, obviously, in their historic role as the custodians of the Haram al-Sharif – and the Israelis joined together as they have worked since 1967 to administer the Haram al-Sharif, to make sure that they de-escalate the situation, and that the steps they take will instill confidence that the status quo will be upheld.
So I say to all people who are interested in this: There are firm commitments, particularly from the custodian of the holy mosque, as well as Israel, to guarantee that they will take these steps. Now, I know that the first question will be: “So exactly what are those steps?” And the answer is we’re not going to lay out each practical step. It is more important that they be done in a quiet and effective way, but they will be noticeable and they will be effective, and I am convinced of that. And I also believe that obviously not all of it can happen overnight. Not every message will reach every person immediately. And not everyone will automatically change in one moment.
But the leadership is committed, I am convinced, on the basis of their discussion tonight and to the seriousness of purpose that they both exhibited. And President – in Prime Minister Netanyahu traveling here to make the effort to have this discussion; King Abdullah being willing to host it; and the length of time we spent discussing it, makes it clear to me that they are serious about working in the effort to create this de-escalation, to take steps that will instill confidence that the status quo will be upheld.
Prime Minister Netanyahu strongly reaffirmed Israel’s commitment to uphold the status quo on the Haram al-Sharif/Temple Mount and to implement these steps. And King Abdullah also agreed to continue to take affirmative steps to restore calm and implement practical measures to prevent further escalation of tensions. And obviously, the proof is not in the words; the proof is in the actions.
In our trilateral discussion, we also discussed the shared commitment by each of us to counter the growing wave of extremism in the region. We placed a call to President al-Sisi to discuss his contribution and support for this critical effort. Why? Frankly, because all of us have been impressed. I was in Egypt a few weeks ago, and President al-Sisi and I had a long discussion about his commitment to the process of challenging extremism and terrorism, and most importantly, his emphasis to me that not only is he committed to counterterrorism, but that he is prepared, in his words, “to do whatever I can,” quote, “in order to advance the cause of peace between Israelis and Palestinians.” And that was an important conversation to have in the context of the potential for new regional security assistance and arrangements. We had a very extensive discussion of the ways in which the regional partners could work together on a security arrangement that advances our common interests, and we agreed – all of us – to continue that conversation in the next days.
Now, we are – all of us – fully aware of the challenges presented by the current tensions. Everybody understands that there are deeply held frustrations that are pent up on both sides. Everybody knows the difficult roads traveled and years and years of disappointment on both sides. And that’s why we all engaged in nine months of negotiations, and it is why all of us would like to see the day when that effort can be re-engaged and can lead to the peace that we all know is the only real, sustainable answer to the underlying causes of this conflict.
But today, we are working to smother the sparks of immediate tension so that they don’t become a fire that is absolutely out of control. And the first thing we have to do is restore calm before you can talk about other alternatives. The United States stands ready to be engaged, provided the parties themselves begin to create the climate. I was pleased that all of the leaders today, particularly Prime Minister Netanyahu and President Abbas earlier today, made clear their desire to see this situation de-escalate and to move in the right direction.
In our meeting today Foreign Minister Judeh and I also discussed how do we best coordinate our efforts against ISIL. We are combining our strengths across our more than 60 partners and along 5 different reinforcing lines of effort to shrink the territory controlled by ISIL, dry up its financing, reduce its supply of foreign fighters, expose the hypocrisy of the absurd religious claims, and provide humanitarian assistance to so many millions of people who are injured by this struggle.
Degrading and ultimately defeating ISIL is not going to happen overnight. We have to be patient as well as strong, and we have to be strategic. But make no mistake: We will succeed. Particularly in Iraq, where our effort by design has been most concentrated, we are making steady progress. I think you all saw that at Baiji recently.
Together with our coalition partners, including Jordan, we have conducted nearly 900 airstrikes against ISIL. Some partners are contributing to the military effort by providing arms; some equipment, training, advice; others are offering humanitarian assistance to those affected by the conflict. And we are particularly grateful to Jordan for opening up its borders and providing safe haven to more than 620,000 Syrian refugees. That’s an extraordinary effort by the country. And I know that there are parents, families, people in the country, who feel the pressure of this. We all understand that. We are deeply, deeply grateful to Jordanians for their humanitarian gesture in receiving these people, and that is one of the reasons why we are so committed to working to try to bring an end to this conflict.
And the United States understands and is particularly appreciative of the burden that has been put on schools, on hospitals, on water and energy services, and so much more. And we will continue to stand beside Jordan; I can assure you of that. I conveyed to His Majesty tonight the deep commitment of the American people, the United States Congress, the Obama Administration to the efforts of the Hashemite Kingdom to assume these important responsibilities.
Finally, as you all know, I traveled to Muscat earlier this week to continue the Iran nuclear negotiations. Our number-one priority on Iran is making sure that they don’t get a nuclear weapon. It’s that simple, that direct. We’re engaged in a difficult but serious negotiation toward that end. The question now is whether Iran will make the choices required to close the final gaps and provide assurances that they can’t develop and won’t develop a nuclear weapon.
Iranian leaders have said repeatedly and unambiguously that they have no intention of building a nuclear weapon. But actions have to be taken to back up those words and time is running short. The international community’s concerns are legitimate, and no agreement can be reached without addressing those concerns.
So in the end, it is really a matter of will, not capacity. Again and again, Iran – importantly, and frankly, gratefully – has said they are not going to seek a nuclear weapon; they exclusively have a peaceful nuclear program. So proving that you have a peaceful program is really just a question of choices. And with the November 24th deadline rapidly approaching, choices are going to have to be made very soon.
I’ll just close by noting this: When you look down the long list of challenges that we face in the world, it’s very easy to miss the fact that there are also unprecedented opportunities. During my meetings in Beijing this week with President Obama, the United States and China came together to jointly announce ambitious new targets to reduce carbon emissions in the post-2020 period. The United States and China are the world’s two largest economies. We’re also the world’s two largest consumers of energy and the two largest emitters of greenhouse gases. We are also two countries regarded for 20 years as the leaders of opposing camps in the climate negotiations.
Now, I know that not everybody in the world wakes up in the morning and worries about this issue. I understand that. People have security challenges of immediate nature, and putting food on the table, and shelter, and being able to protect their families and just survive. But we understand from scientists that this is a collective challenge to survival for all of us in the long run. And by doing what the United States and China did together, we are encouraging other countries to put forward their own ambitious plans, their own ambitious plans to be able to deal with this issue, to have emission reduction targets soon so that we can conclude a strong global agreement in Paris next year in December of 2015.
The commitment of both President Xi and President Obama to take ambitious action in our own countries and to work closely to remove the obstacles on the road to Paris sends a critical signal. It is that we must get this agreement done, that we can get it done, and that we have the ability now to all of us come together because no one country can make this happen on their own. This is one of those issues that requires global input, and we’re proud that together with China, we hope there was a moment of global leadership.
Thank you. Nasser.
FOREIGN MINISTER JUDEH: Thank you very much, John.
Right. I just want to say that Secretary Kerry has to travel soon, and therefore I think we’ll take one question from the Jordanian side and one question from the American side. So, Hamdan.
QUESTION: My question is to secretary general. My name is Hamdan al-Hajj from Ad-Dustour newspaper. You said, Mr. Secretary, that the aim of the trilateral meeting is to restore peace and alleviate tension in Jerusalem. What makes you ambitious and optimistic that Benjamin Netanyahu is going to stick to the commitments? And what are the mechanisms that – to be followed to reach that goal? Thank you.
SECRETARY KERRY: Well, first of all, when you deal in this business, you begin to get a sense of when somebody is expressing a legitimate concern about something or when they’re just brushing you off. And I thought it was quite clear from the conversation this evening and from prior conversations – which is why Prime Minister Netanyahu traveled over here – that he has deep concerns, as everybody does, about the – about what has been going on in the rise of violence. How can you be the prime minister of a country in which people are being run over by trucks, cars, vans, at a trolley station and killed – how can you be the prime minister of a country where someone is being stabbed in the street, killed, where you see what the reactions are, because of people’s interpretation of something, and not respond?
And so this is a test. I believe the prime minister came here because he is concerned, and he made very firm statements tonight about that. Now, I can’t tell you that everything will change between now and tomorrow morning or the next day, because actions are what matter, not just words. So I heard words. They were expressed sincerely. I believe they are. But it’s going to take the test of the next days.
And that is true on the other side too. If President Abbas says he will reduce the rhetoric and change the – and work hard to try to change the atmosphere, then we have to look to the test of that. And in the end, it requires leadership to be able to make this difference.
So I’m here, together with my friend Nasser, to work with him and others, King Abdullah, to try to create the framework within which people can make the right choices. And in the end, I hope they do, and we will see in the days to come.
I don’t know. Nasser, you might want to comment on that also because I think it’s an important question.
FOREIGN MINISTER JUDEH: Well, thanks, John. I mean, I’ll just add by saying that since we saw the recent escalation – and there’s always escalation in Jerusalem, and we’ve always warned that Jerusalem is a redline. His Majesty is the Custodian. Jordan has a historic road. The peace treaty between Israel and Jordan points to that very, very clearly. There was an agreement signed between His Majesty and President Abbas in 2013 reaffirming the Hashemite Custodianship of the Holy Site. And there’s escalation after escalation, particularly in the last two years, and most particularly in the last few weeks.
When Jordan took a decision to recall its ambassador for consultation, it was a sign that enough is enough. There’s a clear message that went to Israel that something needs to be done. We’ve had since some positive developments in terms of the rhetoric, and I think, like I said, hopefully a mechanism that will result in restoring calm and in alleviating the tension that we see.
We’ve had a phone call between His Majesty and Prime Minister Netanyahu a week ago or more when the prime minister reiterated that Israel is committed to the preservation of the status quo and respects the Jordanian role. Today, the discussion was – and we’ve had contacts since, of course, and we’ve had contacts with the international community. But today, the prime minister was very clear in yet again reaffirming that the status quo in Jerusalem will not be touched, and that Israel is committed to this and Israel is committed to respecting the role of the Hashemite Kingdom of Jordan and the Custodianship of His Majesty. But as --
SECRETARY KERRY: And with specific steps.
FOREIGN MINISTER JUDEH: With specific steps and a mechanism. But like John said, it’s actions that will speak louder than words. And we’re monitoring and observing and we’re contacting. We’re remaining in contact. I mean, the idea is not to just withdraw and not establish any means of communication. You need to have communication in order to ensure that what you want is done and what the international community wants is done.
The tension in Jerusalem, as you have seen in the last few days, has sparked tension not just in Jerusalem and around Jerusalem, but elsewhere in the West Bank. And this is something that concerns us all. And we need to restore calm because we need to think of the larger picture and we need to think of the end objective that we all seek, which is peace, a solution to all final status issues – independence, dignity, sovereignty for the Palestinians in the form of a state on their national soil, and security not just for Israel, but for the entire region. I think this is what we are all committed to.
And I think – Warren from Reuters. And the we’ll take one there.
QUESTION: Thank you very much. Mr. Secretary, you’re going to be shocked I have a multipart question. (Laughter.) You have often said, Mr. Secretary, that there are people on both sides of the conflict who do not want peace. Understanding that you and Foreign Minister Judeh don’t want to go into all the details tonight, can you at least give us some idea of the types of things, types of commitments that you got today that would lead you to believe that both sides are willing to pull back and especially rein in their extremists? That’s question one.
Question two: Why was President --
FOREIGN MINISTER JUDEH: You mean – sorry to interrupt. You mean the Palestinians and Israelis?
QUESTION: The Palestinian – yes, thank you. Question --
SECRETARY KERRY: With respect to the Haram al-Sharif or the --
QUESTION: Yes, yes.
SECRETARY KERRY: Okay.
QUESTION: Question two: Why was President Abbas not at the meeting today, the trilateral? And finally, did you and Prime Minister Netanyahu have a chance to discuss the nuclear issue today, and did he reiterate his deep and serious concerns about a weak deal with Iran?
And finally, for Foreign Minister Judeh, will Jordan now return its ambassador to Tel Aviv? Thank you.
SECRETARY KERRY: Well, let me deal with 1-2-3. With respect to the Haram al-Sharif, if you read the basics of the agreement that exists on – in defining the status quo, you will see precisely what is expected of the WAC, the Jordanian force that is responsible, as well as the Israelis. And if the status quo is being maintained, you’ll be able to see exactly what is expected. And I don’t think it’s appropriate to go into all of the ways in which that is going to be implemented. It’s up to the folks there to show it in the way that they’re implementing it. But I think people will notice in the next days, and that’ll be the measure.
So again, we’ve agreed not to go into the specifics because one person or another can misinterpret or not quite understand one choice or another. I think the status quo is clear and the status quo is going to be maintained, and that is what is absolutely vital to the Hashemite Kingdom’s responsibility as Custodian. And the prime minister has made it clear that he will uphold that.
Now with respect to President Abbas, I met with him one-on-one this morning. We had a good conversation, as I mentioned earlier. His Majesty --
FOREIGN MINISTER JUDEH: And His Majesty met --
SECRETARY KERRY: His Majesty met with him yesterday one-on-one, so there’s been a lot of communication. But it just isn’t yet the right moment for the two sides to really come together at this instant. It’s just not – it’s not the appropriate moment. I think they both need to see that things are changing, and there needs to be what we would call a ripeness, if you will, for that meeting that doesn’t exist at this moment. But there was no exclusion. It was simply an effort because we were talking about larger regional peace and security issues that directly involve existing states – state of Israel, state of Jordan, state of Egypt, and the United States – and those are important existing relationships and it was more appropriate to have that conversation in the context that we did.
Finally, with respect to the nuclear issue, yes, the prime minister and I talked one-on-one on that issue for a little while. And he expressed his concerns, of course, and I made it clear to him that the standard that we have applied throughout this negotiation still applies, and that is that there are four pathways to a nuclear weapon and we need to make certain that each pathway – the Fordow facility, the Arak nuclear – the Arak heavy water plutonium reactor facility, the Natanz enrichment facility, and covert capacities – are all closed off so that not – not as a matter of bias or prejudice, but because that’s the only way the world can know for certain that a program is indeed a peaceful program. And our responsibility is to make certain that there is a sufficient breakout time in the event that there was some change in policy or something happened.
So those guarantees are in place and we will keep all of our friends and allies informed of what we are doing in the days ahead. Our hopes remain still to try to achieve an agreement because it’s better for the world. But we can’t achieve just any agreement. It has to be done in a way that meets the standards I just set out. And we’re trying to be as thoughtful as we can in our approach to this, but there’s no shortcut. It’s difficult, and we hope Iran will work in the same way that we are, not as a matter of coercion but out of mutual respect and out of the interests that we all have for living in a world that is free of nuclear weapons. Obviously, the fatwa of the leader is a very important instrument, and we respect it enormously as a matter of religious edict. But that has to be translated into a lay person’s regular document, a legal one, if you will, with all of the things that are necessary for an agreement regarding potential nuclear programs. There are many standards by which that is measured, and that’s exactly how we’re proceeding.
FOREIGN MINISTER JUDEH: The presence of the Jordanian ambassador in Israel since signing the peace treaty in 1994 was not intended to be to the benefit of Israel. The presence of our ambassador there was meant to be an action that would promote Jordanian national interest and promote the bilateral relationship, which will be of mutual benefit.
As you know, there are several diplomatic options available to any country to protest something that they feel very, very strongly about. One of those actions is to recall an ambassador for consultation. And this was a very clear signal to Israel that what’s been happening in the al-Aqsa Mosque compound, particularly over the last few weeks, is not acceptable to Jordan as Custodian, not acceptable to 1.5 billion Muslims around the world, but we have a special responsibility as the Custodian, as a nonpermanent member on the Security Council. And I think recalling our ambassador for consultation was a very, very clear signal that something has to be done to check these actions that are causing much concern not just in the immediate region but around the world.
Now, as the Secretary and I have said for the last few days with intensive diplomacy, with intensive contact with the Israelis, with other international partners and particularly the United States, and in today’s discussions, we have seen a commitment on the part of Israel to respect and maintain the status quo and respect the special role of Jordan and to ease the tension and remove all the elements of instability that we are seeing. We have to wait and see if this is done. Like I said, there are concrete steps out there to be done. There is an agreement that we need to de-escalate. There is a commitment on the part of Israel that the status quo has to be maintained and to respect the Jordanian. Let’s see what happens and then we’ll review our decision, but we have to see what happens on the ground first.
SECRETARY KERRY: Folks, I apologize. I know there are a lot of questions, but I have to get back to the United States, leaving right now and my pilots are under a time restriction, so if you’ll forgive us, we need to take our leave.
FOREIGN MINISTER JUDEH: Thank you very much.
SECRETARY KERRY: Thank you all very, very much.
Remarks With Jordanian Foreign Minister Judeh After Their Meeting
Remarks
John Kerry
Secretary of State
Ministry of Foreign Affairs
Amman, Jordan
November 13, 2014
FOREIGN MINISTER JUDEH: (Via interpreter) In the name of Allah, the most gracious, the most merciful. At the outset, I would like to welcome a friend of His Majesty King Abdullah to Jordan, as well as to me personally, he – His Excellency, the Secretary of State of the United States of America. I do welcome him in this important visit and at this particular important moment. We have been honored today with a bilateral meeting as His Majesty King Abdullah received Secretary Kerry. And over the past 48 hours, they were – they covered different significant diplomatic deliberations and talks starting with the meetings with President Abbas yesterday. And today, His Majesty the King received Secretary of State, Mr. John Kerry.
And this evening, His Majesty the King, there was a bilateral – trilateral meeting where His Majesty met President Netanyahu – Prime Minister Netanyahu as well as Secretary of State. And they discussed coaxial issues, including Jerusalem and the Holy Shrines, and they took a lot of time. And their discussion and all the developments that have taken place over the recent few weeks were at the core of the issue and they have led to more instability.
His Majesty, during his meeting with Mr. Kerry this afternoon, explained Jordan’s position and the stance regarding the necessity of maintaining the status quo of the Holy Shrines, and they should not be touched or affected by any means. And this is part of the Hashemite custody of these Christian and Muslim sanctities in Jerusalem. And you are well aware also that when Jordan took some measures, there was confirmation on the part of the Israeli nation, Israeli state, and they showed commitment that they will maintain the status quo and respect the Jordanian role, and also respect the peace treaty between the two countries. And this is what also has been stated during the trilateral meeting this evening.
And you will listen also to the outcomes of this trilateral meeting. There are mechanisms and communications underway, including practical measures to de-escalate the tension and that maintain the status quo without getting it affected by such tensions.
During the bilateral meeting with Mr. Kerry, there were extensive negotiations regarding all the developments across the region. And we will go back to the Palestinian-Israeli problem. There were also discussions regarding the Syrian crisis and the U.S. as well as Jordan’s commitment to go back to the peaceful solution. It will be the only solution that will stop destruction, violence, instability, and the disintegration across the Syrian scene. This is Jordan’s stance, and it is in harmony with the U.S. stance as well.
There has been also talks about anti-terrorism and anti-extremism. And His Majesty the King stressed – and I also stressed during my negotiations and talks with Mr. Kerry – that this is the battle of moderate Islam against extremism and against (inaudible). Therefore, talks addressed this issue as well – including other issues.
With respect to the peace process, you are well aware that Mr. Kerry and the Obama Administration are committed to find a peaceful solution that addresses all the final status issues and that the two parties should come back to peace process. Mr. Kerry is a man of peace, and he has proven this through his intensive and focused efforts over one year as the Secretary of State and also for the case as the head of a committee at the Congress. He is a man who is renowned for his efforts inside the United States and outside the United States. And we have seen the Secretary of State in more than one year meeting all the stakeholders, particularly the Palestinian and Israeli sides. In addition, other countries who have high interest in peace, like the Hashemite Kingdom of Jordan and Republic of Egypt – he met with them scores of times. And I think the meetings that His Excellency Kerry has been unprecedented, and this confirms U.S. commitment and Mr. Kerry’s commitment to this peace process. He is now attempting to repave the way for coming back to a negotiation – and negotiations and to stop unilateral actions and measures, and we do support him in these efforts.
Once again, it is our high interest, and our national interest requires and entails the two-state solutions according to international legitimacy, especially the Arab Peace Initiative. Therefore, I would like to say that the trilateral meeting that was held this evening with the Israeli prime minister has already addressed the issue through the monitoring and follow-up of the Jordanian efforts. It also focused basically on the efforts being put forth by Mr. Kerry in order to revive the situation, to come back to negotiations. Another important aspect under the trilateral negotiations – a telephone conference with President Sisi was also conducted. And, as you know, Egypt is a basic and a key country when we talk about the issues of this region, as well as the Palestinian-Israeli peace process.
Therefore, I would like to conclude here that part – or a significant part of our talks today included the distinguished bilateral relationships, and we have extended our thanks for their continued efforts to the Hashemite Kingdom of Jordan, especially in helping Jordan to shoulder the tremendous burden. And through the U.S. economic assistance and help, we have been able to bear the situation. We have extended our thanks, and we have discussed so many aspects of these distinguished bilateral relationships.
I do welcome His Excellency, and I do extend my thanks for his efforts towards peace. And this is in harmony with His Majesty’s and the Kingdom’s position towards peace in order to have a stable region without terror and without turmoil. Thank you.
SECRETARY KERRY: Well, thank you very much. Good evening to everybody, and I am particularly grateful to my good friend, Nasser Judeh, who tonight I learned is the longest-serving foreign minister in the history of Jordan. So – and I asked him – I said, “Are you going to look like that on those portraits that are hanging out there?” And he said – that’s when he informed me that until recently, one of them was the longest serving. Now I’m standing beside him. So I’m honored to be here with him. And I have to tell you, he is a very valued partner and a very skilled diplomat, and somebody that we rely on for great collaboration and for very significant advice and counsel. And I thank him for his friendship very, very much.
I also particularly want to thank His Majesty King Abdullah, who is a gracious host, but also a courageous leader who understands how important this moment is and how critical it is to move forward. And I thank him for his exhaustive personal efforts in trying to resolve some of the region’s most difficult challenges, whether it’s Syria and Iraq, ISIL, or the longstanding conflict between the Israelis and the Palestinians. Through all of these challenges, one constant has been the enormously constructive role that Jordan has played under difficult circumstances in order to try to resolve those challenges. And we’re very grateful and we admire those efforts.
I had a very productive meeting this morning with President Abbas, and Foreign Minister Judeh and I, as he just mentioned to you, have come here directly from a trilateral meeting, a discussion with Prime Minister Netanyahu of Israel and with His Majesty King Abdullah of Jordan.
President Abbas and I this morning discussed constructive steps, real steps – not rhetoric, but real steps that people can take in order to de-escalate the situation and create a climate where we can move forward in a positive and constructive way. President Abbas strongly restated his firm commitment to nonviolence, and he made it clear that he will do everything possible to restore calm and to prevent the incitement of violence and to try to change the climate.
We particularly talked about the urgent need to address the greatest tension between Israelis and Palestinians beginning with the imperative, the absolute need to uphold the status quo regarding the administration of the Haram al-Sharif/Temple Mount and to take affirmative steps to prevent provocations and incitement. In the trilateral meeting this evening, we discussed, as Nasser has explained to you, specific and practical actions that both sides can take to restore calm. The Jordanians and the Israelis have agreed – the Jordanians, obviously, in their historic role as the custodians of the Haram al-Sharif – and the Israelis joined together as they have worked since 1967 to administer the Haram al-Sharif, to make sure that they de-escalate the situation, and that the steps they take will instill confidence that the status quo will be upheld.
So I say to all people who are interested in this: There are firm commitments, particularly from the custodian of the holy mosque, as well as Israel, to guarantee that they will take these steps. Now, I know that the first question will be: “So exactly what are those steps?” And the answer is we’re not going to lay out each practical step. It is more important that they be done in a quiet and effective way, but they will be noticeable and they will be effective, and I am convinced of that. And I also believe that obviously not all of it can happen overnight. Not every message will reach every person immediately. And not everyone will automatically change in one moment.
But the leadership is committed, I am convinced, on the basis of their discussion tonight and to the seriousness of purpose that they both exhibited. And President – in Prime Minister Netanyahu traveling here to make the effort to have this discussion; King Abdullah being willing to host it; and the length of time we spent discussing it, makes it clear to me that they are serious about working in the effort to create this de-escalation, to take steps that will instill confidence that the status quo will be upheld.
Prime Minister Netanyahu strongly reaffirmed Israel’s commitment to uphold the status quo on the Haram al-Sharif/Temple Mount and to implement these steps. And King Abdullah also agreed to continue to take affirmative steps to restore calm and implement practical measures to prevent further escalation of tensions. And obviously, the proof is not in the words; the proof is in the actions.
In our trilateral discussion, we also discussed the shared commitment by each of us to counter the growing wave of extremism in the region. We placed a call to President al-Sisi to discuss his contribution and support for this critical effort. Why? Frankly, because all of us have been impressed. I was in Egypt a few weeks ago, and President al-Sisi and I had a long discussion about his commitment to the process of challenging extremism and terrorism, and most importantly, his emphasis to me that not only is he committed to counterterrorism, but that he is prepared, in his words, “to do whatever I can,” quote, “in order to advance the cause of peace between Israelis and Palestinians.” And that was an important conversation to have in the context of the potential for new regional security assistance and arrangements. We had a very extensive discussion of the ways in which the regional partners could work together on a security arrangement that advances our common interests, and we agreed – all of us – to continue that conversation in the next days.
Now, we are – all of us – fully aware of the challenges presented by the current tensions. Everybody understands that there are deeply held frustrations that are pent up on both sides. Everybody knows the difficult roads traveled and years and years of disappointment on both sides. And that’s why we all engaged in nine months of negotiations, and it is why all of us would like to see the day when that effort can be re-engaged and can lead to the peace that we all know is the only real, sustainable answer to the underlying causes of this conflict.
But today, we are working to smother the sparks of immediate tension so that they don’t become a fire that is absolutely out of control. And the first thing we have to do is restore calm before you can talk about other alternatives. The United States stands ready to be engaged, provided the parties themselves begin to create the climate. I was pleased that all of the leaders today, particularly Prime Minister Netanyahu and President Abbas earlier today, made clear their desire to see this situation de-escalate and to move in the right direction.
In our meeting today Foreign Minister Judeh and I also discussed how do we best coordinate our efforts against ISIL. We are combining our strengths across our more than 60 partners and along 5 different reinforcing lines of effort to shrink the territory controlled by ISIL, dry up its financing, reduce its supply of foreign fighters, expose the hypocrisy of the absurd religious claims, and provide humanitarian assistance to so many millions of people who are injured by this struggle.
Degrading and ultimately defeating ISIL is not going to happen overnight. We have to be patient as well as strong, and we have to be strategic. But make no mistake: We will succeed. Particularly in Iraq, where our effort by design has been most concentrated, we are making steady progress. I think you all saw that at Baiji recently.
Together with our coalition partners, including Jordan, we have conducted nearly 900 airstrikes against ISIL. Some partners are contributing to the military effort by providing arms; some equipment, training, advice; others are offering humanitarian assistance to those affected by the conflict. And we are particularly grateful to Jordan for opening up its borders and providing safe haven to more than 620,000 Syrian refugees. That’s an extraordinary effort by the country. And I know that there are parents, families, people in the country, who feel the pressure of this. We all understand that. We are deeply, deeply grateful to Jordanians for their humanitarian gesture in receiving these people, and that is one of the reasons why we are so committed to working to try to bring an end to this conflict.
And the United States understands and is particularly appreciative of the burden that has been put on schools, on hospitals, on water and energy services, and so much more. And we will continue to stand beside Jordan; I can assure you of that. I conveyed to His Majesty tonight the deep commitment of the American people, the United States Congress, the Obama Administration to the efforts of the Hashemite Kingdom to assume these important responsibilities.
Finally, as you all know, I traveled to Muscat earlier this week to continue the Iran nuclear negotiations. Our number-one priority on Iran is making sure that they don’t get a nuclear weapon. It’s that simple, that direct. We’re engaged in a difficult but serious negotiation toward that end. The question now is whether Iran will make the choices required to close the final gaps and provide assurances that they can’t develop and won’t develop a nuclear weapon.
Iranian leaders have said repeatedly and unambiguously that they have no intention of building a nuclear weapon. But actions have to be taken to back up those words and time is running short. The international community’s concerns are legitimate, and no agreement can be reached without addressing those concerns.
So in the end, it is really a matter of will, not capacity. Again and again, Iran – importantly, and frankly, gratefully – has said they are not going to seek a nuclear weapon; they exclusively have a peaceful nuclear program. So proving that you have a peaceful program is really just a question of choices. And with the November 24th deadline rapidly approaching, choices are going to have to be made very soon.
I’ll just close by noting this: When you look down the long list of challenges that we face in the world, it’s very easy to miss the fact that there are also unprecedented opportunities. During my meetings in Beijing this week with President Obama, the United States and China came together to jointly announce ambitious new targets to reduce carbon emissions in the post-2020 period. The United States and China are the world’s two largest economies. We’re also the world’s two largest consumers of energy and the two largest emitters of greenhouse gases. We are also two countries regarded for 20 years as the leaders of opposing camps in the climate negotiations.
Now, I know that not everybody in the world wakes up in the morning and worries about this issue. I understand that. People have security challenges of immediate nature, and putting food on the table, and shelter, and being able to protect their families and just survive. But we understand from scientists that this is a collective challenge to survival for all of us in the long run. And by doing what the United States and China did together, we are encouraging other countries to put forward their own ambitious plans, their own ambitious plans to be able to deal with this issue, to have emission reduction targets soon so that we can conclude a strong global agreement in Paris next year in December of 2015.
The commitment of both President Xi and President Obama to take ambitious action in our own countries and to work closely to remove the obstacles on the road to Paris sends a critical signal. It is that we must get this agreement done, that we can get it done, and that we have the ability now to all of us come together because no one country can make this happen on their own. This is one of those issues that requires global input, and we’re proud that together with China, we hope there was a moment of global leadership.
Thank you. Nasser.
FOREIGN MINISTER JUDEH: Thank you very much, John.
Right. I just want to say that Secretary Kerry has to travel soon, and therefore I think we’ll take one question from the Jordanian side and one question from the American side. So, Hamdan.
QUESTION: My question is to secretary general. My name is Hamdan al-Hajj from Ad-Dustour newspaper. You said, Mr. Secretary, that the aim of the trilateral meeting is to restore peace and alleviate tension in Jerusalem. What makes you ambitious and optimistic that Benjamin Netanyahu is going to stick to the commitments? And what are the mechanisms that – to be followed to reach that goal? Thank you.
SECRETARY KERRY: Well, first of all, when you deal in this business, you begin to get a sense of when somebody is expressing a legitimate concern about something or when they’re just brushing you off. And I thought it was quite clear from the conversation this evening and from prior conversations – which is why Prime Minister Netanyahu traveled over here – that he has deep concerns, as everybody does, about the – about what has been going on in the rise of violence. How can you be the prime minister of a country in which people are being run over by trucks, cars, vans, at a trolley station and killed – how can you be the prime minister of a country where someone is being stabbed in the street, killed, where you see what the reactions are, because of people’s interpretation of something, and not respond?
And so this is a test. I believe the prime minister came here because he is concerned, and he made very firm statements tonight about that. Now, I can’t tell you that everything will change between now and tomorrow morning or the next day, because actions are what matter, not just words. So I heard words. They were expressed sincerely. I believe they are. But it’s going to take the test of the next days.
And that is true on the other side too. If President Abbas says he will reduce the rhetoric and change the – and work hard to try to change the atmosphere, then we have to look to the test of that. And in the end, it requires leadership to be able to make this difference.
So I’m here, together with my friend Nasser, to work with him and others, King Abdullah, to try to create the framework within which people can make the right choices. And in the end, I hope they do, and we will see in the days to come.
I don’t know. Nasser, you might want to comment on that also because I think it’s an important question.
FOREIGN MINISTER JUDEH: Well, thanks, John. I mean, I’ll just add by saying that since we saw the recent escalation – and there’s always escalation in Jerusalem, and we’ve always warned that Jerusalem is a redline. His Majesty is the Custodian. Jordan has a historic road. The peace treaty between Israel and Jordan points to that very, very clearly. There was an agreement signed between His Majesty and President Abbas in 2013 reaffirming the Hashemite Custodianship of the Holy Site. And there’s escalation after escalation, particularly in the last two years, and most particularly in the last few weeks.
When Jordan took a decision to recall its ambassador for consultation, it was a sign that enough is enough. There’s a clear message that went to Israel that something needs to be done. We’ve had since some positive developments in terms of the rhetoric, and I think, like I said, hopefully a mechanism that will result in restoring calm and in alleviating the tension that we see.
We’ve had a phone call between His Majesty and Prime Minister Netanyahu a week ago or more when the prime minister reiterated that Israel is committed to the preservation of the status quo and respects the Jordanian role. Today, the discussion was – and we’ve had contacts since, of course, and we’ve had contacts with the international community. But today, the prime minister was very clear in yet again reaffirming that the status quo in Jerusalem will not be touched, and that Israel is committed to this and Israel is committed to respecting the role of the Hashemite Kingdom of Jordan and the Custodianship of His Majesty. But as --
SECRETARY KERRY: And with specific steps.
FOREIGN MINISTER JUDEH: With specific steps and a mechanism. But like John said, it’s actions that will speak louder than words. And we’re monitoring and observing and we’re contacting. We’re remaining in contact. I mean, the idea is not to just withdraw and not establish any means of communication. You need to have communication in order to ensure that what you want is done and what the international community wants is done.
The tension in Jerusalem, as you have seen in the last few days, has sparked tension not just in Jerusalem and around Jerusalem, but elsewhere in the West Bank. And this is something that concerns us all. And we need to restore calm because we need to think of the larger picture and we need to think of the end objective that we all seek, which is peace, a solution to all final status issues – independence, dignity, sovereignty for the Palestinians in the form of a state on their national soil, and security not just for Israel, but for the entire region. I think this is what we are all committed to.
And I think – Warren from Reuters. And the we’ll take one there.
QUESTION: Thank you very much. Mr. Secretary, you’re going to be shocked I have a multipart question. (Laughter.) You have often said, Mr. Secretary, that there are people on both sides of the conflict who do not want peace. Understanding that you and Foreign Minister Judeh don’t want to go into all the details tonight, can you at least give us some idea of the types of things, types of commitments that you got today that would lead you to believe that both sides are willing to pull back and especially rein in their extremists? That’s question one.
Question two: Why was President --
FOREIGN MINISTER JUDEH: You mean – sorry to interrupt. You mean the Palestinians and Israelis?
QUESTION: The Palestinian – yes, thank you. Question --
SECRETARY KERRY: With respect to the Haram al-Sharif or the --
QUESTION: Yes, yes.
SECRETARY KERRY: Okay.
QUESTION: Question two: Why was President Abbas not at the meeting today, the trilateral? And finally, did you and Prime Minister Netanyahu have a chance to discuss the nuclear issue today, and did he reiterate his deep and serious concerns about a weak deal with Iran?
And finally, for Foreign Minister Judeh, will Jordan now return its ambassador to Tel Aviv? Thank you.
SECRETARY KERRY: Well, let me deal with 1-2-3. With respect to the Haram al-Sharif, if you read the basics of the agreement that exists on – in defining the status quo, you will see precisely what is expected of the WAC, the Jordanian force that is responsible, as well as the Israelis. And if the status quo is being maintained, you’ll be able to see exactly what is expected. And I don’t think it’s appropriate to go into all of the ways in which that is going to be implemented. It’s up to the folks there to show it in the way that they’re implementing it. But I think people will notice in the next days, and that’ll be the measure.
So again, we’ve agreed not to go into the specifics because one person or another can misinterpret or not quite understand one choice or another. I think the status quo is clear and the status quo is going to be maintained, and that is what is absolutely vital to the Hashemite Kingdom’s responsibility as Custodian. And the prime minister has made it clear that he will uphold that.
Now with respect to President Abbas, I met with him one-on-one this morning. We had a good conversation, as I mentioned earlier. His Majesty --
FOREIGN MINISTER JUDEH: And His Majesty met --
SECRETARY KERRY: His Majesty met with him yesterday one-on-one, so there’s been a lot of communication. But it just isn’t yet the right moment for the two sides to really come together at this instant. It’s just not – it’s not the appropriate moment. I think they both need to see that things are changing, and there needs to be what we would call a ripeness, if you will, for that meeting that doesn’t exist at this moment. But there was no exclusion. It was simply an effort because we were talking about larger regional peace and security issues that directly involve existing states – state of Israel, state of Jordan, state of Egypt, and the United States – and those are important existing relationships and it was more appropriate to have that conversation in the context that we did.
Finally, with respect to the nuclear issue, yes, the prime minister and I talked one-on-one on that issue for a little while. And he expressed his concerns, of course, and I made it clear to him that the standard that we have applied throughout this negotiation still applies, and that is that there are four pathways to a nuclear weapon and we need to make certain that each pathway – the Fordow facility, the Arak nuclear – the Arak heavy water plutonium reactor facility, the Natanz enrichment facility, and covert capacities – are all closed off so that not – not as a matter of bias or prejudice, but because that’s the only way the world can know for certain that a program is indeed a peaceful program. And our responsibility is to make certain that there is a sufficient breakout time in the event that there was some change in policy or something happened.
So those guarantees are in place and we will keep all of our friends and allies informed of what we are doing in the days ahead. Our hopes remain still to try to achieve an agreement because it’s better for the world. But we can’t achieve just any agreement. It has to be done in a way that meets the standards I just set out. And we’re trying to be as thoughtful as we can in our approach to this, but there’s no shortcut. It’s difficult, and we hope Iran will work in the same way that we are, not as a matter of coercion but out of mutual respect and out of the interests that we all have for living in a world that is free of nuclear weapons. Obviously, the fatwa of the leader is a very important instrument, and we respect it enormously as a matter of religious edict. But that has to be translated into a lay person’s regular document, a legal one, if you will, with all of the things that are necessary for an agreement regarding potential nuclear programs. There are many standards by which that is measured, and that’s exactly how we’re proceeding.
FOREIGN MINISTER JUDEH: The presence of the Jordanian ambassador in Israel since signing the peace treaty in 1994 was not intended to be to the benefit of Israel. The presence of our ambassador there was meant to be an action that would promote Jordanian national interest and promote the bilateral relationship, which will be of mutual benefit.
As you know, there are several diplomatic options available to any country to protest something that they feel very, very strongly about. One of those actions is to recall an ambassador for consultation. And this was a very clear signal to Israel that what’s been happening in the al-Aqsa Mosque compound, particularly over the last few weeks, is not acceptable to Jordan as Custodian, not acceptable to 1.5 billion Muslims around the world, but we have a special responsibility as the Custodian, as a nonpermanent member on the Security Council. And I think recalling our ambassador for consultation was a very, very clear signal that something has to be done to check these actions that are causing much concern not just in the immediate region but around the world.
Now, as the Secretary and I have said for the last few days with intensive diplomacy, with intensive contact with the Israelis, with other international partners and particularly the United States, and in today’s discussions, we have seen a commitment on the part of Israel to respect and maintain the status quo and respect the special role of Jordan and to ease the tension and remove all the elements of instability that we are seeing. We have to wait and see if this is done. Like I said, there are concrete steps out there to be done. There is an agreement that we need to de-escalate. There is a commitment on the part of Israel that the status quo has to be maintained and to respect the Jordanian. Let’s see what happens and then we’ll review our decision, but we have to see what happens on the ground first.
SECRETARY KERRY: Folks, I apologize. I know there are a lot of questions, but I have to get back to the United States, leaving right now and my pilots are under a time restriction, so if you’ll forgive us, we need to take our leave.
FOREIGN MINISTER JUDEH: Thank you very much.
SECRETARY KERRY: Thank you all very, very much.
REAL ESTATE DEVELOPER-MORTGAGE BROKER TO SERVE 121 MONTH SENTENCE FOR ROLE IN $50 MILLION FRAUD SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, November 12, 2014
Real Estate Developer Sentenced to 121 Months in Prison for $50 Million Dollar Securities Fraud Scheme
A commercial real estate developer and mortgage broker was sentenced to serve 121 months in prison today for his role in a $50 million securities fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California and Special Agent in Charge Douglas G. Price of the FBI’s Phoenix Division made the announcement. U.S. District Judge Cathy Ann Bencivengo of the Southern District of California imposed the sentence.
Bradley Holcom, 57, of Canby, Oregon, previously pleaded guilty to wire fraud in connection with the sale of approximately $50 million worth of promissory notes to more than 150 investors located throughout the United States.
Holcom admitted that he solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he called the Trust Deed Investment Program. Holcom falsely told investors who purchased notes through the program that they would receive a lien on a specific piece of property, and that the lien would be in first position. Holcom admitted, however, that he never provided investors with a lien, and instead conveyed a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, he admitted that while promising investors that their purported lien would be in first position, he knew the properties were already encumbered by first position liens. Holcom also admitted that he sold the properties that were supposedly serving as the security for the promissory notes without informing investors. Despite his declining financial condition in 2008 and 2009, Holcom continued to solicit investors by misrepresenting the manner in which he would use their investments. As a result of the scheme, Holcom admitted that his conduct caused approximately $50 million in losses to investors.
In addition to the prison sentence, Holcom was ordered to pay restitution to his victims, with the final amount to be determined at a subsequent hearing.
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Mark Pletcher of the Southern District of California. The U.S. Securities and Exchange Commission also provided substantial assistance.
Wednesday, November 12, 2014
Real Estate Developer Sentenced to 121 Months in Prison for $50 Million Dollar Securities Fraud Scheme
A commercial real estate developer and mortgage broker was sentenced to serve 121 months in prison today for his role in a $50 million securities fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California and Special Agent in Charge Douglas G. Price of the FBI’s Phoenix Division made the announcement. U.S. District Judge Cathy Ann Bencivengo of the Southern District of California imposed the sentence.
Bradley Holcom, 57, of Canby, Oregon, previously pleaded guilty to wire fraud in connection with the sale of approximately $50 million worth of promissory notes to more than 150 investors located throughout the United States.
Holcom admitted that he solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he called the Trust Deed Investment Program. Holcom falsely told investors who purchased notes through the program that they would receive a lien on a specific piece of property, and that the lien would be in first position. Holcom admitted, however, that he never provided investors with a lien, and instead conveyed a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, he admitted that while promising investors that their purported lien would be in first position, he knew the properties were already encumbered by first position liens. Holcom also admitted that he sold the properties that were supposedly serving as the security for the promissory notes without informing investors. Despite his declining financial condition in 2008 and 2009, Holcom continued to solicit investors by misrepresenting the manner in which he would use their investments. As a result of the scheme, Holcom admitted that his conduct caused approximately $50 million in losses to investors.
In addition to the prison sentence, Holcom was ordered to pay restitution to his victims, with the final amount to be determined at a subsequent hearing.
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Mark Pletcher of the Southern District of California. The U.S. Securities and Exchange Commission also provided substantial assistance.
Friday, November 14, 2014
SECRETARY KERRY'S REMARKS ON INTERNATIONAL EDUCATION WEEK
FROM: U.S. STATE DEPARTMENT
International Education Week
Press Statement
John Kerry
Secretary of State
Washington, DC
November 14, 2014
The Departments of State and Education celebrate the 15th annual International Education Week November 17-21, 2014. During this week, literally thousands of events will be held around the world to highlight the benefits of global learning and student exchanges.
To understand why this is important, we have only to consider the consequences when people lack what international education provides – namely an objective understanding of the world that exists outside the narrow boundaries of our own communities and lives.
We know that, in some places, children are educated to see the globe as divided between “us” and “them.” They are told that personal fulfillment can only come by refighting ancient battles or by crushing the dreams of another.
That is the opposite of the kind of learning we honor during International Education Week.
At the Department of State, we see international education as a core component of our diplomacy. This is because, in the work we do every day, we see how vital it is that young people absorb what true international education teaches: how to think critically, the importance of civility, and a willingness to respond to contrary opinions with hard questions -- not bitter denials or an insistence on dogma.
The development of these abilities is essential, but it does not happen automatically. It happens because of the dedication of our educators and the leadership of the academic community. It happens because so many top universities have made a commitment to helping our young people learn more about themselves by learning first-hand about the world. It happens because many businesses and foundations understand that global education is an extraordinarily wise and effective investment in the future.
The United States welcomes international students because they help bring a new and wider perspective into classrooms, because they contribute more than $27 billion each year to our economy, and because – upon returning home – they contribute to a better understanding of American ideals, policies, and culture.
Wherever I go in the world, I run into foreign ministers, prime ministers, businesspeople and activists who have studied in the United States. Here in the United States, I interact constantly with talented men and women who have spent a part of their education in study abroad. Recent surveys are clear that major employers value the skills and experience that international education provides.
It is evidence of this issue’s importance that President Obama has placed a strong emphasis on reaching out to young leaders on every continent and to do so by increasing both the size and the diversity of our student exchange programs. As Secretary of State, I echo this call and urge U.S. students from all walks of life to take advantage of the opportunity to study abroad.
It has been said that all history is a race between education and catastrophe. Obviously, that is a race we must win, and international education provides a platform for victory.
International Education Week
Press Statement
John Kerry
Secretary of State
Washington, DC
November 14, 2014
The Departments of State and Education celebrate the 15th annual International Education Week November 17-21, 2014. During this week, literally thousands of events will be held around the world to highlight the benefits of global learning and student exchanges.
To understand why this is important, we have only to consider the consequences when people lack what international education provides – namely an objective understanding of the world that exists outside the narrow boundaries of our own communities and lives.
We know that, in some places, children are educated to see the globe as divided between “us” and “them.” They are told that personal fulfillment can only come by refighting ancient battles or by crushing the dreams of another.
That is the opposite of the kind of learning we honor during International Education Week.
At the Department of State, we see international education as a core component of our diplomacy. This is because, in the work we do every day, we see how vital it is that young people absorb what true international education teaches: how to think critically, the importance of civility, and a willingness to respond to contrary opinions with hard questions -- not bitter denials or an insistence on dogma.
The development of these abilities is essential, but it does not happen automatically. It happens because of the dedication of our educators and the leadership of the academic community. It happens because so many top universities have made a commitment to helping our young people learn more about themselves by learning first-hand about the world. It happens because many businesses and foundations understand that global education is an extraordinarily wise and effective investment in the future.
The United States welcomes international students because they help bring a new and wider perspective into classrooms, because they contribute more than $27 billion each year to our economy, and because – upon returning home – they contribute to a better understanding of American ideals, policies, and culture.
Wherever I go in the world, I run into foreign ministers, prime ministers, businesspeople and activists who have studied in the United States. Here in the United States, I interact constantly with talented men and women who have spent a part of their education in study abroad. Recent surveys are clear that major employers value the skills and experience that international education provides.
It is evidence of this issue’s importance that President Obama has placed a strong emphasis on reaching out to young leaders on every continent and to do so by increasing both the size and the diversity of our student exchange programs. As Secretary of State, I echo this call and urge U.S. students from all walks of life to take advantage of the opportunity to study abroad.
It has been said that all history is a race between education and catastrophe. Obviously, that is a race we must win, and international education provides a platform for victory.
JOINT STATEMENT ON INITIATIVE TO PROMOTE FUNDAMENTAL LABOR RIGHTS AND PRACTICES IN MYANMAR
FROM: THE WHITE HOUSE
November 13, 2014
Joint Statement
November 14, 2014
The Republic of the Union of Myanmar, the United States of America, Japan, Denmark and the International Labour Organization (ILO) today are jointly launching a new Initiative to Promote Fundamental Labor Rights and Practices in Myanmar. The Initiative is designed to: 1) improve Myanmar’s system of labor administration through a multi-year labor law reform and capacity building plan (labor reform plan); and 2) foster strong relations among businesses, workers, civil society organizations, and the Government of Myanmar through a stakeholder consultative mechanism. The Initiative is intended to build upon Myanmar’s existing labor reform efforts, including ongoing legislative reform activities supported by the ILO. To that end, the labor reform plan developed under this Initiative is intended to serve as a blueprint to prioritize legal changes, coordinate donor assistance, and strengthen government capacity to implement those reforms in close cooperation with civil society representatives. The stakeholder consultative mechanism is intended to provide a forum for business, labor, and other civil society representatives to provide guidance on the development of the labor reform plan to the government and to foster constructive relationships among them.
As an initial step in the development of the Initiative, the Government of Myanmar established the Technical Committee Cluster on Labor Law Reform and Institutional Capacity Building (“Labor Law Reform Cluster”) in October 2014 under the Employment Opportunities Sector Working Group (EOSWG). The EOSWG is one of 15 Sector Working Groups established by the Government of Myanmar under the Nay Pyi Taw Accord for Effective Development Cooperation. This Labor Law Reform Cluster is intended to provide donor partners, stakeholders, and the ILO a forum to support the Government of Myanmar and civil society in the development of the labor reform plan. To support this process, the United States is providing initial funding to the ILO for a labor law expert to advise the government on its reform efforts. The Initiative participants also envision organizing a broad stakeholder forum in Myanmar in early 2015 to provide input on the development of the labor reform plan.
The participating governments and the ILO welcome the engagement of other interested governments, stakeholders, and institutions in support of this Initiative. Myanmar is at a pivotal stage of its political and economic development, and the country’s future depends on its ability to grow its economy, create decent work, and re-integrate into the global economy. Governments and stakeholders have a unique opportunity to promote lasting positive development in Myanmar by working together to improve an important component of its investment environment – its labor regime. The Initiative is designed to support the government and stakeholders in promoting international labor standards and responsible business practices, helping to make Myanmar an attractive sourcing and investment destination, protecting Myanmar’s workers and supporting its businesses, and advancing Myanmar’s overall sustainable growth and development.
November 13, 2014
Joint Statement
November 14, 2014
The Republic of the Union of Myanmar, the United States of America, Japan, Denmark and the International Labour Organization (ILO) today are jointly launching a new Initiative to Promote Fundamental Labor Rights and Practices in Myanmar. The Initiative is designed to: 1) improve Myanmar’s system of labor administration through a multi-year labor law reform and capacity building plan (labor reform plan); and 2) foster strong relations among businesses, workers, civil society organizations, and the Government of Myanmar through a stakeholder consultative mechanism. The Initiative is intended to build upon Myanmar’s existing labor reform efforts, including ongoing legislative reform activities supported by the ILO. To that end, the labor reform plan developed under this Initiative is intended to serve as a blueprint to prioritize legal changes, coordinate donor assistance, and strengthen government capacity to implement those reforms in close cooperation with civil society representatives. The stakeholder consultative mechanism is intended to provide a forum for business, labor, and other civil society representatives to provide guidance on the development of the labor reform plan to the government and to foster constructive relationships among them.
As an initial step in the development of the Initiative, the Government of Myanmar established the Technical Committee Cluster on Labor Law Reform and Institutional Capacity Building (“Labor Law Reform Cluster”) in October 2014 under the Employment Opportunities Sector Working Group (EOSWG). The EOSWG is one of 15 Sector Working Groups established by the Government of Myanmar under the Nay Pyi Taw Accord for Effective Development Cooperation. This Labor Law Reform Cluster is intended to provide donor partners, stakeholders, and the ILO a forum to support the Government of Myanmar and civil society in the development of the labor reform plan. To support this process, the United States is providing initial funding to the ILO for a labor law expert to advise the government on its reform efforts. The Initiative participants also envision organizing a broad stakeholder forum in Myanmar in early 2015 to provide input on the development of the labor reform plan.
The participating governments and the ILO welcome the engagement of other interested governments, stakeholders, and institutions in support of this Initiative. Myanmar is at a pivotal stage of its political and economic development, and the country’s future depends on its ability to grow its economy, create decent work, and re-integrate into the global economy. Governments and stakeholders have a unique opportunity to promote lasting positive development in Myanmar by working together to improve an important component of its investment environment – its labor regime. The Initiative is designed to support the government and stakeholders in promoting international labor standards and responsible business practices, helping to make Myanmar an attractive sourcing and investment destination, protecting Myanmar’s workers and supporting its businesses, and advancing Myanmar’s overall sustainable growth and development.
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